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IMF Sees Saudi Break-Even Oil Price Drop Less Than Forecast

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  • Price needed to balance budget to drop 14% this year: IMF
  • Iran widens break-even gap from Saudi as forecast revised down

Oil Prices Rise as OPEC Gets Ready to Cut

The average oil price that Saudi Arabia needs to balance its budget will fall this year by only half as much as forecast six months ago, according to the International Monetary Fund.

The country’s fiscal break-even price will drop to $79.70 a barrel this year from $92.90 in 2015, the IMF said in a report released on Wednesday, a fall of 14 percent. In April, the IMF projected that the Saudi break-even price would decrease by 30 percent this year, to $66.70 a barrel from $94.80.