• 3 minutes Why NG falling n crude up?
  • 7 minutes Tesla Battery Day (announcements on technology)
  • 10 minutes America Could Go Fully Electric Right Now
  • 1 min Kalifornistan, CO2, clueless politicians, climate hustle
  • 2 hours Presidential debate will address taxes. Personal and Corp, including International Oil companies that pay little U.S. Income tax using Transfer Pricing.
  • 2 days JP Morgan Christyan Malek, report this Summer .. . We are at beginning of oil Super Cycle and will see $190 bbl Brent by 2025. LOL
  • 2 hours Something wicked this way comes
  • 11 hours Ilhan Omar connected Ballot Harvester in cash-for-ballots scheme
  • 2 days Jake Gardner from Omaha wrongly charged with murder while protecting his business from rioters. . . . . . Kills himself
  • 2 days Ten Years of Plunging Solar Prices
Oil Prices Slide As Libya Restarts Production

Oil Prices Slide As Libya Restarts Production

Oil prices fell on Monday…

Mexico’s Crude Oil Future Is In Jeopardy

Mexico’s Crude Oil Future Is In Jeopardy

Mexico’s oil reform, which opened…

Biden Fracking Ban Could Cripple New Mexico’s Oil Industry

Biden Fracking Ban Could Cripple New Mexico’s Oil Industry

Presidential hopeful Joe Biden’s proposed…

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