Saudi pushes for at least $70 per barrel crude oil

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Saudi pushes for at least $70 per barrel crude oil

Budget concerns had been pressing Saudi to thrive for a higher oil price of as little as $70 per barrel this year, at least three industry sources with knowledge regarding OPEC output cut mentioned on Friday, the 22nd of March 2019.

According to one of the sources, the OPEC-kingpin Saudi had been yearning for a higher crude price and would more likely to push forward for a crude price higher than $70 per barrel despite a harsh and surging US shale oil production and an erosion of Riyadh’s share of global crude market.

Saudi, the de-facto leader of OPEC, a 28-nation pact of global petroleum exporting nations, had been quoted saying that they were going to totter their crude exports steeply to some of their main customers in March and April despite a higher demand of the refineries.

The approach would likely to prod further response from Trump Administration, as the US President had frequently been urging the OPEC to help balance crude oil prices by not hiking the price too quick. A spokesman closer to Saudi oil policy had also been quoted in terms of being anonymous that the export cuts had been designed for cropping up the crude prices, as Saudi had been vying to prevent a buffet of their budget.

Never the less, according to figures cited by the director of IMF’s (International Monetary Fund) Middle East and Central Asia Department, Jihad Azour, even an oil price of $70 per barrel would not be sufficient to supplement Saudi’s over-optimistic budget, and Riyadh would need oil price at least at a $80-$85 level to support its budget.