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The IMF has called on Saudi Arabia to hike its domestic energy prices in order to curb runaway demand that is cannibalizing its export revenue lifeblood.
“Saudi Arabia has one of the highest levels of energy consumption per capita in the world and one of the lowest prices,” the IMF notes in its latest country report on the kingdom, released this week.
This rise in energy consumption is leading to a fall in crude oil exports and revenue, which has already begun, according to MEES analysis of the latest Jodi statistics.
CRUDE VOLUMES DOWN, PRICES DOWN TOO
Saudi crude oil exports fell by 2.4%, or 175,000 b/d, to 7.252mn b/d in the first seven months of 2014 from 7.427mn b/d in the corresponding period of 2013. Given that average prices for Saudi crude have also fallen moderately over the same period crude export revenues have fallen further (see table).
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