Jadwa: Oil Revenues to Jump 66%, Saudi Budget to achieve Surplus in 2022

Jadwa Investment revealed that Saudi budget will achieve a big surplus of SR 298 billion or 7.8% of GDP in 2022 compared to previously expected surplus of SR 90 billion, while the company expected a surplus of SR 210 billion in 2023 or 5.7% of GDP.

Jadwa added that the average Brent crude prices will hit $102 a barrel in 2022. The updated estimates are based on higher Brent prices in addition to the higher average oil output at 10.5 million bpd in 2022 as a whole.

The company sees that total oil revenues in the Kingdom will reach SR 935 billion in 2022, with 66% increase, so total revenues will hit SR 1.3 trillion.

There are several incidents that may curb more oil prices increases such as Covid-19 lockdowns in China, expected lower demand and 240 million barrels release of strategic oil reserves of IEA countries.

Moreover, the Russian-Ukrainian conflict is still pressing on the market, so any possible EU embargo on Russian oil imports may cause a sudden leap of prices.