Saudi Arabia Pegs Budget to Oil at Around $50, Goldman Says
- Kingdom budgeting for oil to average $50 until 2023, bank says
- World’s main oil exporter needs higher price to balance budget
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Saudi Arabia’s Finance Ministry is budgeting for oil prices to be around $50 a barrel for the next three years, according to a Goldman Sachs Group Inc. analysis of the kingdom’s fiscal plans.
“Using our own estimates for the breakdown of government revenues, we calculate that the numbers presented in the budget statement are based on an average oil price of around $50 a barrel between 2020 and 2023,” said Farouk Soussa, a London-based analyst at Goldman, referring to a pre-budget statement from Sept. 30.