Saudi Arabia pegs budget to oil staying around $50 until 2023

Saudi Arabia pegs budget to oil staying around $50 until 2023

Saudi Arabia's Finance Ministry is confident that oil prices will stay around $50 a barrel for at least the next three years.

That's according to Goldman Sachs Group Inc.'s analysis of the kingdom's pre-budget statement released on September 30.

“Using our own estimates for the breakdown of government revenues, we calculate that the numbers presented in the budget statement are based on an average oil price of around $50 a barrel between 2020 and 2023,” said Farouk Soussa, a London-based analyst at Goldman.

Saudi Arabia would need oil to trade at $66 to balance its budget in 2021, according to estimates from the IMF

Brent crude fell 6.3 percent to $39.27 a barrel last week as more countries tightened restrictions to counter the coronavirus pandemic and US President Donald Trump got infected, causing traders