An expected? Saudi Arabia Would Need Oil At $80-$85 A Barrel To Balance Budget

Top oil exporter Saudi Arabia would need oil priced at $80-$85 a barrel to balance its budget this year, an International Monetary Fund official said.Riyadh’s breakeven oil price depends on several factors, including the level of oil production, how much of Saudi oil revenues are transferred to the budget, and how non-oil revenues perform this year. “But if you take the (2019) budget as presented with everything remaining equal, a breakeven point would be around $80-$85 dollars,” Jihad Azour, director of the IMF’s Middle East and Central Asia department, told Reuters. Crude oil prices have dropped more than 30 percent from a peak above $86 dollars a barrel hit in October. Benchmark Brent crude was trading at around $62 a barrel on Monday Such price volatility has had an impact on the public finances and economic growth of all oil-exporting countries. “It will not affect their ability to finance themselves, because when you look at Saudi, its (bond) spreads are very tight, but it has an effect on fiscal accounts,” Azour said.

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They are preparing the public ... on their side is all the drama in Venezuela and Iran, so they choose the perfect time to hit ...

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The rest of the world needs oil under of  $40 a barrel to live a good life :)

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6 minutes ago, pinto said:

They are preparing the public ... on their side is all the drama in Venezuela and Iran, so they choose the perfect time to hit ...

Or they can take their “corrupt” billionaires to a hotel and shake them down for another $100 Billion....

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I'm wondering if that "break even" includes all the plans incorporated in their 2030 Vision Plan? If it does I can see where they can very easily scale back projects and operate pretty well with prices in the $62-$65 dollar range.

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Pumping four million barrels of oil a day, the Permian basin is now producing more oil than every OPEC member except Saudi Arabia and Iraq... So,  MbS stop with your greed boy.

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Greed and sin... isn’t it something that world is respecting today? I'm wondering what will be if, after Saud Arabia, any of "big" OPEC countries want to fill their budget... ( $100, $120.... per barrel) Ridiculous!

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6 minutes ago, 50 shades of black said:

Pumping four million barrels of oil a day, the Permian basin is now producing more oil than every OPEC member except Saudi Arabia and Iraq... So,  MbS stop with your greed boy.

I agree. The only real answer: 

https://www.nytimes.com/2019/02/03/business/energy-environment/texas-permian-field-oil.html

 

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8 hours ago, Justin Hicks said:

I'm wondering if that "break even" includes all the plans incorporated in their 2030 Vision Plan? If it does I can see where they can very easily scale back projects and operate pretty well with prices in the $62-$65 dollar range.

I have issue with so much of Vision 2030, but the premise is good. With their population boom, high 25 and under unemployment, and they can't just invent another 6 million government jobs, they need a private sector, but they want to engineer it as if it was a government ministry, which won't work, especially in an environment where you can't be critical of the leader without fearing for your livelihood, or worse.  How they are "priming the pump" has massive issues IMHO, but cutting back and hoping won't help much. 

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23 hours ago, damirUSBiH said:

The rest of the world needs oil under of  $40 a barrel to live a good life :)

Unfortunately the world cant have oil at $40.  Oil shale in its most suitable basin can not be produced at a profit under $50.  It is only producing 5 million barrels of the required 100 million per day.  Large volumes are produced from offshore which needs around $60 to breakeven. 

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