07.01.2014 - Saudi breakeven oil price crawls higher
Bank of America Merrill Lynch says its preliminary spending projections for 2014 place Saudi Arabia’s fiscal breakeven oil price at $85 a barrel. “This is $5 higher than the floor we had previously anticipated policy-makers would be looking to defend,” the bank said in a report. “We see two main takeaways from Saudi Arabia’s 2014 budget. Firstly, the fiscal breakeven oil price has crawled higher and remains sticky at $85 per barrel due to Arab Spring spending. Secondly, a shift to more realistic budgeting practices suggests awareness of the need to manage expenditures carefully. We accordingly maintain our 2014 GDP growth projection at 3.6 percent,” said the bank...............................................Full Article: Source
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