Saudi Arabia’s hoard of U.S. Treasuries fell to the lowest level in about four years in October, even as the country’s oil revenue surged.
The kingdom sold around $8 billion in U.S. government debt, the most in over a year, bringing its stock to $116.5 billion, according to Treasury Department data. It was the biggest seller after Norway, which sold $16 billion in October, the latest month for which figures are available.
The drop in Treasury holdings coincided with a $15 billion fall in foreign assets held by the Saudi central bank, which manages the kingdom’s reserves. It also came as crude prices averaged $78.52 a barrel in October, the highest monthly average in three years. Expectations of higher oil prices and production volumes have led the government to forecast it will report its first budget surplus in nearly a decade in 2022.
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