Saudi: Major 2017 Oil Revenue Gains, But Non-Oil Disappoints

Saudi Arabia strengthened its trade balance in 2017 with its surplus more than doubling to $95bn. Healthier oil prices more than offset lower export volumes, boosting export revenues, but the government’s efforts to invigorate the non-oil sector continue to fall flat.

Saudi Arabia has been the driving force behind the Opec+ production cuts that have been in force since January 2017. The kingdom cut crude production by 390,000 b/d (3.8%) over 2017 and has kept output at this level for the first two months of 2018 ( MEES, 9 March ).

The output cuts resulted in crude exports for 2017 falling below 7mn b/d for the first time since 2010, and market share losses in key markets. However, the gambit secured one of Saudi Arabia’s key aims in boosting oil prices: Saudi’s benchmark Arab Light rising 28% in value to $52.59/B over the course of 2017. But how positive was it overall for government coffers? (CONTINUED - 1320 WORDS)


chart 1: Saudi Export Revenues ($Bn): Oil At Three Year Highs. Non-Oil Disappoints...
chart 2: ...But Late Year Gains Boosts Hope For 2018
table Saudi Arabia Key Trade Figures ($Bn)
chart 3: Saudi Oil Exports Climb The Value Chain (Mn B/D): Overall Volumes Are Down But Refinery Upgrades Have Increased Volumes Of Diesel And Gasoline, Paring Revenue Losses
chart 4: Saudi’s Top 5* Buyers All Increased Takings In 2017, As Combined Share Rose Above 50% ($Bn)
chart 5: The Same Five Are Also The Largest Buyers Of Saudi Crude ('000 B/D)
chart 6: Saudi Cuts Imports in 2017, But Is Increasingly Dependent On Just Five Sources ($Bn)