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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


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