"Moreover, its economic health is predicated on crude prices staying high. Saudi’s break-even — the oil price required to balance the budget in any given year — has been rising fast, from $68 a barrel in 2012 to between $95 and $106 this year, according to a report by Khalid Alsweilem of the Belfer Center. With oil now trading far below that level, the budgetary implications for Riyadh are worrying."
Wednesday, May 20, 2015
Saudi spending habits
"Moreover, its economic health is predicated on crude prices staying high. Saudi’s break-even — the oil price required to balance the budget in any given year — has been rising fast, from $68 a barrel in 2012 to between $95 and $106 this year, according to a report by Khalid Alsweilem of the Belfer Center. With oil now trading far below that level, the budgetary implications for Riyadh are worrying."