In rolling out its 2018 budget, Saudi Arabia indicated that it expects government oil revenues to rise by 12%, Bloomberg reports.
According to the government’s budget statement, Saudi Arabia is predicting that oil revenues will rise to $131 billion in 2018 from $117 billion this year, the news agency reports.
“Assuming Saudi Arabia will continue to comply with the OPEC production cuts throughout 2018, the budgeted increase in oil revenue reflects an expectation of higher export prices,” Ziad Daoud, an economist with Bloomberg Economics, stated.
In November, OPEC and its oil-producing allies agreed to extend their production-cut agreement until the end of 2018. The agreement, implemented in January 2017, is meant to draw down global oil supplies and drive up prices.
Brent crude has risen 13% this year, according to Bloomberg.