- Conflict pushes up oil price
- Export flows will determine deficit
- Depends on Abqaiq-Yanbu pipeline
The surge in oil prices triggered by the Iran war could ease pressure on Saudi Arabia’s budget deficit if Aramco maintains export flows, but analysts warn the conflict has introduced too much uncertainty, making it difficult to gauge the impact.
Brent crude hit four-year highs on Monday, at almost $120 a barrel, before settling closer to $105 later in the day. Oil is comfortably above Saudi Arabia’s breakeven price of $87 – the level needed to balance the government’s…
