Saudi Arabia's fiscal breakeven oil price is rising fast. What will the kingdom do about it?
Publishing timestamp: 2024-09-05 08:33:53
Summary
Saudi Arabia's fiscal breakeven oil price is increasing due to spending on Vision 2030 projects. IMF forecasts show a rising breakeven oil price, reaching $96.20 for 2024. Despite this, Saudi Arabia has tools to manage deficits, such as taking on more debt and tapping into foreign currency reserves. The country's public debt is relatively low compared to other countries, and reforms are being implemented to boost foreign investment and diversify revenue streams. However, risks remain, especially if oil demand softens and crude supply from non-OPEC+ countries continues to grow.
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Keywords: oil and gas, united states, business news, ice brent crude (apr'23), middle east, breaking news: economy, economic events, china, economy, saudi arabia, energy, united arab emirates, emerging markets,
Source: https://www.cnbc.com/2024/09/05/saudi-arabias-fiscal-breakeven-oil-price-is-rising-fast.html