• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours In a Nutshell...
  • 18 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 13 hours Is OilPrice a cover for Green Propganda
  • 24 hours Putin Paid Militants to Kill US Troops
  • 18 hours Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 21 mins Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 16 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 2 hours Happy 4th of July!
  • 23 hours The Political Genius of Donald Trump
  • 2 days Apology Accepted!
  • 2 days Why Oil could hit $100
  • 2 days Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 2 days Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Lower Oil Production Will Cause Saudi Budget Deficit To Balloon

Saudi Arabia is predicting that its budget deficit will balloon to US$50 billion next year as low oil prices and lowered production eat into the Kingdom’s oil revenue, according an official budget released Monday by the Saudi Arabian government.

The anticipated 2020 budget deficit would be up $15 billion on 2019 and will come even as Saudi Arabia plans to cut spending next year by 7.8%, to $272 billion. Revenues are expected to be down by 14.6%, according to the official statement.

The 2020 budget deficit will next year, then, be 6.5% of its gross domestic product, up from 4.7% in 2019.

The increase to the oil-rich Kingdom’s budget deficit comes as no surprise, as oil prices have fallen sharply from the days of $100 oil, and its oil production has taken a huge hit over the last year as it tried to do most of the production cutting for other members who were not quite as diligent with the cuts. Next year, too, is expected to see even less oil production for the Kingdom, with Saudi Arabia agreeing to even lower production figure, and then offering to produce 400,000 bpd less than that figure.

The hope is that these extra production cuts will lift the price of oil to a level that will make up for the lower production—although that has hardly been the case for 2019.

Estimated oil revenue for 2020 is 513 billion riyals, according to its budget by presented by Reuters, or US$136.8 billion. For comparison, Saudi Arabia’s 2019 oil revenue is projected to be 602 billion riyals.

Reducing Saudi Arabia’s dependency on oil is the backbone of its Vision 2030 reforms.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News