I posted an EIA piece last week showing the decline in OPEC oil revenues over the past few years… Here is Andrew Torchia, Reuters, on the Saudi budget:
“The result is likely to be that the budget deficit for 2017 comes close to Riyadh’s original projection of 198 billion riyals. Though that would be a marked improvement from last year’s 297 billion riyals, at about 8 percent of gross domestic product it would still be too high for comfort.”
“Similarly, oil prices could have a big impact on the Aramco IPO. Consultants Sanford C. Bernstein have estimated that Aramco would make a net profit of $13.30 a barrel on its upstream production with oil at $50, but $16.90 at $60.
That suggests a $10 swing in the oil price could conceivably make a difference of hundreds of millions of dollars to Aramco’s IPO valuation, helping to determine whether the government can claim it is getting a good price.”
Here is the whole story: http://www.reuters.com/article/us-oil-opec-saudi-economy-idUSKBN18I0O1
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