Saudi data suggests budget crunch may be several years away

Dubai

PRESSURE on Saudi Arabia's state finances is mounting as oil prices fall, but the latest official figures suggest the world's top crude exporter still has at least several years before it faces a budget crunch.

Brent oil sank last week to below US$50 a barrel, near six-year lows, from US$70 three months ago. That promises to increase the rate at which the kingdom is drawing down its foreign reserves to cover its budget deficit.

A study by a former Saudi central bank official released last week said that the world might have entered a sustained period of low oil prices, leaving Riyad…