Saudi Budget Estimate for Oil Is Seen as `Wishful Thinking' - Bloomberg

Saudi Budget Estimate for Oil Is Seen as `Wishful Thinking' - Bloomberg:

Some analysts say Saudi Arabia’s 2019 revenue forecast is surprising because they estimate it to be based on a relatively high price of oil.

The plan defies “the laws of arithmetic,” said Ziad Daoud, the Dubai-based chief Middle East economist at Bloomberg Economics. The government’s projections may be based on a crude price as high as $80 a barrel in 2019, and it would have to climb to $95 a barrel to balance the budget, he said. Brent crude traded near $56 a barrel on Wednesday.

The immediate reaction from stock investors is lackluster, with the main Saudi gauge falling 1.1 percent on Wednesday. Yields on Saudi Arabia’s $5 billion of bonds due 2028 climbed five basis points to 4.31 percent.