Saudi Arabia needs oil price between $80-$85 to balance budget: IMF

Saudi Arabia would need oil priced at $80-$85 a barrel to balance its budget in 2019, Reuters reported, quoting an International Monetary Fund (IMF) official.

“Riyadh's breakeven oil price depends on several factors, including the level of oil production, how much of Saudi oil revenues are transferred to the budget, and how non-oil revenues perform this year,” Jihad Azour, director of the IMF’s Middle East and Central Asia department, said.

"But if you take the (2019) budget as presented with everything remaining equal, a breakeven point would be around $80-$85," he added.

With plans to boost and diversify the economy, Saudi Arabia has estimated spending to hit SAR 1.106 trillion, with a budget deficit of about SAR 128 billion in 2019.

“The Saudi government can afford the additional stimulus but that its top priority should continue to be balancing the budget by 2023,” Azour said.