Saudi Arabia’s main goal is to keep the oil market stable over the long term, while being ready for different oil price scenarios, said Saudi Minister of Economy and Planning Faisal Alibrahim on Tuesday.
“We’re always ready for multiple scenarios, and we have buffers,” Alibrahim said at the Qatar Economic Forum in Doha.
He added that Saudi Arabia has strong long-term fiscal plans and medium-term frameworks that help the country adjust based on how the market develops.
Alibrahim noted that Saudi Arabia focuses on long-term market stability. This approach helps ensure enough investment to meet global oil demand.
Earlier this month, OPEC+, led by Saudi Arabia, agreed to increase oil output by 411,000 barrels per day (bpd) in June. This is nearly three times the volume initially planned. The decision followed a similar output rise announced for May and shows a shift away from previous efforts to support higher oil prices.
OPEC+ said the increase was based on “healthy oil market fundamentals.”
The move suggests Saudi Arabia is willing to accept lower oil prices in the short term. This strategy aims to discipline OPEC+ members who overproduce and to challenge U.S. shale producers, who are cutting spending as oil prices near or fall below their breakeven levels.
According to the International Monetary Fund (IMF), Saudi Arabia needs oil prices at about $91 per barrel to balance its budget.
With many uncertainties in global trade and oil demand growth, Saudi Arabia may face a long period of prices below this level. Analysts say the country might have to increase borrowing to cover its expenses or delay some large projects and Vision 2030 initiatives.
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