War Sends Saudi Oil Output Down and Revenue Up
Source Summary
Saudi Arabia's budget deficit shrank to 34.3 billion riyals ($9.1 billion) in the second quarter, a decline of nearly 75% from 125.7 billion riyals in Q1. Oil revenue surged 28% due to higher crude prices, while government spending fell 3.5%, offsetting the impact of a contraction in oil output and a deeper economic contraction.
In depth
Saudi Arabia's finance ministry reported a narrowing budget deficit in the second quarter of 34.3 billion riyals, down substantially from 125.7 billion riyals in the first quarter. The improvement came despite ongoing challenges to the kingdom's oil sector and economy. Oil revenue climbed 28% quarter-on-quarter, driven by a sharp rise in crude prices. Government expenditure decreased by 3.5% during the same period. The combination of higher oil revenues and reduced spending helped offset the negative effects of declining oil output and what the ministry described as the kingdom's steepest economic contraction since the COVID-19 pandemic.
