Riyadh: Saudi Arabia would be able to cope with Brent crude oil at an average price of $80 (Dh293.81) a barrel next year, according to consultant Petromatrix GmbH.
Brent futures traded at about $113 a barrel on London's ICE Futures Europe exchange yesterday. In April, Bank of America Corporation estimated that the world's biggest crude exporter needed a price of $95 this year to cover increases in government spending.
Saudi Arabia is likely to finish 2011 with a "significant" budget surplus, Petromatrix said in an e-mailed report. The kingdom boosted shipments earlier this year to compensate for a halt in Libyan supplies.
"The kingdom could in theory afford to see Brent at $70 and still be within the budget constraints over a two-year period," said Olivier Jakob, Petromatrix's managing director.