• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 13 minutes Venezuela continues to sink in misery
  • 1 hour End of EV Subsidies?
  • 9 mins Maersk's COO statment.
  • 2 hours Citi cuts Apple's price target
  • 7 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 2 hours Asian stocks down
  • 7 hours OPEC Cuts Deep to Save Cartel
  • 2 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 7 hours China Builds LNG Icebreaker
  • 8 hours Price Decline in Chinese Solar Panels
  • 19 hours IT IS FINISHED. OPEC Victorious
  • 5 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 9 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 10 mins GOODBYE FOREIGN OIL DEPENDENCE!!
Alt Text

BP Is Comfortable With $50 Oil

Oil majors are not worried…

Alt Text

Qatar Quits OPEC

Prominent OPEC member Qatar has…

Alt Text

Hapless Alberta Takes Action As Oil Prices Crash

Alberta’s politicians are scrambling to…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Higher Oil Prices Slash Saudi Deficit

The Saudi Finance Minister has announced an annual decline in the budget deficit for the first half of the year thanks to higher oil prices in the period. At US$19.39 billion (72.728 billion riyals), the first-half deficit was 51 percent lower than what the government had projected, the ministry also said. Total budget revenues in the period rose by 29 percent on an annual basis while expenditures fell by 2 percent.

Over the second quarter, the deficit fell on an annual basis but rose on a quarterly basis, Reuters noted in a report of the ministry’s announcement, recalling that the Kingdom had projected a full-year deficit of US$52.80 billion (198 billion riyals), or 8 percent of GDP, compared with US$79.2 billion (297 billion riyals).

Oil revenues rose by 28 percent over the second quarter, while overall revenues were up by a more moderate 6 percent on an annual basis.

Saudi Arabia has been relentless in its attempts to prop up international oil prices more consistently, while at the same time publicizing its progress in diversifying away from oil and into other industries, including renewable energy. Recently, the Kingdom launched a tender for the construction of a 400-MW wind farm as part of an initiative to build 9.5 GW of renewable capacity by 2023. Related: Automotive Giants Are Betting Big On Ride Sharing Tech

Meanwhile, Riyadh has been trying to rein in its OPEC co-members that are falling short of their production targets set out in the November deal, and pledging to cut its own exports to compensate for increases from other members of the cartel.

At a St. Petersburg meeting of oil ministers last month, Saudi Arabia said it would cut its exports to 6.6 million barrels from August but TankerTrackers data for the first week of the month revealed no cuts have been made, except to China.

Last week, reports emerged that Saudi Arabia would cut its crude oil exports to Asian clients by as much as 1 million bpd. That smacks of desperation as the Asian market is key for every crude oil exporter, and market share there is precious. Yet, the Kingdom seems to be willing to risk more of its market share to keep prices where they are or, hopefully, push them higher.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • jack ma on August 14 2017 said:
    SA is below 500 billion USD reserves now and burning 120 billion a year. At 50 oil they are doomed in 2.5 years and they know it. Their IPO will not save them. Karma is upon the unroyal family now for all of their war crimes in Yemen and violations of civil rights. IMHO

Leave a comment




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