• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 6 mins Iran Is Winning Big In The Middle East
  • 6 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 7 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 9 hours Nor Chicago, nor Detroit: Killings By Police Divide Rio De Janeiro Weary Of Crime
  • 22 mins Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 5 hours US to Drown the World in Oil
  • 1 day Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 11 hours With Global Warming Greenland is Prime Real Estate
  • 1 hour OPEC will consider all options. What options do they have ?
  • 8 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 1 day A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 1 day What to tell my students
  • 4 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
Alt Text

Is Renewable Hydrogen A Threat To Natural Gas?

SoCalGas and German Electrochaea have…

Alt Text

Global Renewables Investment To Hit $13.3 Trillion By 2050

Global investments in renewable energy…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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:




Download The Free Oilprice App Today

Back to homepage


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
Download on the App Store Get it on Google Play