Arab Light crude, which makes up about 50 percent of Saudi Arabia’s oil output, is forecast to average $105 a barrel this year, according to National Commercial Bank, the kingdom’s largest bank by assets.
The lender raised its estimate by $10 from its previous forecast of $95, NCB said in an e-mailed report today. Arab Light averaged $107.80 last year, helping Saudi Arabia to report a record budget surplus, the bank said in December.
Saudi Arabian Oil Co., or Saudi Aramco as the state producer is known, pumps five grades of crude that range from Arab Heavy to Arab Super Light, according to the company’s website.
To contact the reporter on this story: Wael Mahdi in Khobar, Saudi Arabia at email@example.com.