Saudi research firm, Jadwa Investment has said the kingdom will need a breakeven crude oil price of $74 per barrel to generate the funds required to meet its widening expenditure next year, Saudi Gazette has reported. “The oil price level necessary for revenues to balance our forecast level of government spending… is $74 per barrel for Saudi export crude,” Jadwa said, adding it would amount to about $70 per barrel for West Texas Intermediate (WTI) and $78 per barrel for Brent. Expenditure is expected to overshoot the budget to reaching SR733bn, the Riyadh-based investment firm said in a report.
It would appear that there is a limit to which KSA is going to wish oil prices to fall if any. Based on their investment Strategy in almost all areas they will need a constant flow of petro dollars to make it all work out.
Projects such as $3b on renewable energy and Multi Billion investments in Rail infrastructure all contribute into the massive budgets for investment. The Current KSA budget for the next 13 months is some 50,000 times greater than their fist budget produced some decades ago.
As usual the number always give some pause for thought