Saudi Arabia Needs $85 Brent To Balance 2014 Budget

Brent is forecast to average $104 next year, down from about $110 in 2013, Jadwa said.



Saudi Arabia, the world’s largest crude exporter, needs to pump about 9.4 million barrels a day at $85 per barrel for Brent to balance its 2014 fiscal budget, according to Jadwa Investment Co.

The Kingdom’s production will fall by 200,000 barrels a day next year from this year’s average of 9.6 million as output is cut to make room for additional supplies from Iraq, Libya, Iran and non-OPEC producers, the Riyadh-based investment bank said in a report today.

Brent is forecast to average $104 next year, down from about $110 in 2013, Jadwa said. Brent for February settlement rose as much as 32 cents to $111.88 today on the ICE Futures Europe exchange and was at $111.84 as of 11:08 a.m. in London.

Saudi Arabia exported crude at about $104 this year and this may drop to $100 in 2014, Jadwa said.