Petrodollars are once again flowing in for Saudi Arabia. The kingdom is earning more money from oil exports than at any time since 2018, as the global economic recovery and OPEC+ production cuts boost prices. The producers’ cartel meets on Monday and has signaled it will continue with a gradual easing of those output curbs, though, with Brent crude near $80 a barrel, some traders and even the White House are putting pressure on it to move faster.
One immediate impact to the oil and gas commodities boom – Saudi Arabia can pay their social programs without forcing Saudi Aramco from going into more debt. Saudi Arabia is already forecasting their Budget balancing in 2023. Let that one sink in for a moment.
Source: Bloomberg and Saudi Govt.