Saudi Arabia’s exports surge in October due to rising oil prices

Saudi Arabia’s exports surged in October as the world’s largest oil exporters benefited from rising oil prices.
Exports surged from 55.9 billion riyals a year ago to 106.2 billion riyals ($ 28 billion), according to the Kingdom’s Bureau of Statistics. Oil’s share of total exports rose from 66.1% to 77.6% in October.
Saudi Arabia’s economy recovered this year as oil prices soared and the effects of the coronavirus pandemic eased. This month, the Kingdom raised its revenue forecast for next year, with crude oil production and prices in the black for the first time in eight years, poised to achieve the fastest economic growth since 2011.
Oil exports increased 123% year-on-year, or 45.5 billion riar, in October, according to statistics. Non-oil exports increased 25.5% to 23.8 billion rials.
Authorities expect a sharp recovery in the Saudi Arabian economy, with growth forecasts of 2.9% this year and 7.4% in 2022, according to a statement.
However, the emergence of Omicron coronavirus variants could cause problems next year, questioning global economic recovery. After the variant was first identified in late November, oil plunged into the bear market and benchmark prices fell by about $ 10 a day, but there are still few signs of a significant impact on demand.
According to Mazenal-Sudairi, Head of Research at Al Rajhi Capital, oil revenues in 2022 are projected to reach 655 billion rials. “The break-even point for the budget is about $ 65 per barrel, but revenue in 2022 could be based on Brent, which is about $ 75 per barrel,” he said.
The International Monetary Fund estimated in October that Saudi Arabia would need an oil price of $ 72.40 a barrel to balance next year’s budget. Brent crude oil prices have risen to over $ 75 a barrel this year. According to the International Energy Agency, Saudi Arabia’s production is also expected to average 10.7 million barrels per day in 2022, a record high for the year.
This year’s oil has increased by about 50% due to a strong backlash from the pandemic, but recovery has slowed recently due to concerns about Omicron. However, supply disruptions in Libya and Nigeria have shown some signs of tightening. Meanwhile, recent demand outlooks have been boosted by positive news about the seriousness of Omicron.