Saudi Arabia needs Crude Oil prices to be higher than what President Trump wants, as the Kingdom increases spending to bolster economic growth.
International Monetary Fund (IMF) data released Monday show the world’s biggest Crude Oil exporter needs prices at about $85 bbl to balance its budget this year, up from a forecast of $73 bbl in September.
The estimates highlight the task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with President Trump and, at the same time, finance a plan to revive economic growth and create jobs at home.
The Kingdom reiterated last week its commitment to balance its books by Y 2023 plans to increase spending by 7% this year.
President Trump has called on OPEC to keep Crude Oil prices low Tweeting Friday that he had spoken to Saudi Arabia and other suppliers about boosting Crude Oil production.
Many of OPEC’s biggest producers and partners outside the group are poised to post a government budget surplus if Crude Oil prices gain from the average $62 bbl so far this year.
Saudi Arabia expects its budget deficit to narrow to 4.2% of GDP this year from 4.6% in Y 2018, a target that hinges on higher Crude Oil prices.
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