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Wednesday, 2 May 2018

Saudi Arabia's Economic Revamp Is Still an Oil Story - Bloomberg

Saudi Arabia's Economic Revamp Is Still an Oil Story - Bloomberg:

"Saudi Arabia’s efforts to shore up public finances and revive economic growth are still pretty much dependent on oil prices, even as the kingdom tries to reduce its reliance on revenue from crude exports. The world’s biggest oil exporter will need crude prices to average almost $88 a barrel this year to balance its budget, according to the latest IMF economic outlook released on Wednesday in Dubai. That compares with $70 in the previous forecast in October. Brent crude, an international benchmark, is currently trading above $70 a barrel, the highest level since 2014. The increase in the so-called breakeven price reflects the government’s plan to boost public spending to a record this year in an attempt to revive economic growth, after gross domestic product shrank 0.5 percent in 2017. The fund expects the breakeven price to fall to about $80 in 2019."



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