Saudi Dilemma: Output Boost Could Hurt Its Oil-Based Economy - Bloomberg

Saudi Dilemma: Output Boost Could Hurt Its Oil-Based Economy - Bloomberg:

"Saudi Arabia’s plan to halt the oil-price rally could hurt its economy, depriving the kingdom of billions of dollars in income that it needs more than many other OPEC members.

Although the country’s economy isn’t the most reliant on crude exports among the group’s five biggest producers -- Kuwait gets that distinction -- Saudi Arabia is the only member that will post a significant budget deficit despite higher-than-expected oil prices this year, according to Bloomberg calculations based on International Monetary Fund data.

A decline of just one dollar in average prices this year to $69 a barrel would wipe out any financial benefit for the kingdom if it boosts exports by about 500,000 barrels a day, according to the calculations."



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