Saudi Arabia announces $32 billion in emergency funds

The Saudi government announced a $ 32 billion in aid on Friday to support a pandemic-driven economy and drastically lower oil prices.

Earlier this week, the Kingdom cut its 2020 budget by almost 5%, a move many economists predict this will be the first of a series of cuts.

According to the International Monetary Fund, Saudi Arabia needs an oil price of $ 82 a barrel to balance its budget.

In fact, an increase in oil production will have a mechanical effect on GDP growth through a greater volume of production in the oil sector, and thus stimulate oil GDP growth.

Oil prices are projected to recover in the second half of 2020.

WTI weekly chart

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance