The largest exporter of crude oil in the world isn’t impacted by the low oil prices as much as other major producers, according to a federal stat shop.
Saudi Arabia’s sovereign wealth fund will help it weather the steep drop in oil prices, which current has $733 billion in savings.
{mosads}That’s 19 times the amount it would need to spend — $39 billion — to maintain its current output.
“Consequently, the short-term effect of lower oil prices on Saudi Arabia should be minimal,” the Energy Information Administration (EIA) said on Thursday.
“In contrast, OPEC’s decision to keep crude oil production near present levels, keeping supply high and prices low, has affected the budgets of members that lack Saudi Arabia’s financial reserves,” EIA added.
If prices stay low, Saudi Arabia will continue to wrack up a budget deficit each year.
U.S. oil producers are feeling the squeeze more than Saudi Arabia presently. And as of Thursday, global oil layoffs surpassed 10,000, Bloomberg Business said.