Saudi Arabia needs $80 barrel oil for its budget to balance. It may not get it. From Tyler Durden at zerohedge.com:
In all the noise surrounding the latest market moves, political news and frenzy over the Fed’s rate hike (or pause), an important development was missed by many when Saudi Arabia released its budget for 2019 on Tuesday, which at 1.106 trillion riyals, or $295 billion – the largest in the kingdom’s on record – represents a 7% increase from 1.030 trillion in 2018.
During the unveiling of the budget, Saudi King Salman said his country will continue paying public sector cost-of-living allowances for citizens and will boost spending to stimulate growth even as Saudi Arabia toils to close its deficit, which it won’t do yet again as the kingdom forecasts a 6th consecutive budget deficit in a row, estimated to hit $35 billion in 2019.
“We are determined to go ahead with economic reform, achieving fiscal discipline, improving transparency and empowering private sector,” the King said.