Latest news with #oil revenues
Reuters
6 hours ago
- Business
- Reuters
Saudi budget deficit shrinks to $9.21 billion as oil, other revenues rise
July 31 (Reuters) - Saudi Arabia's budget deficit narrowed to 34.534 billion riyals ($9.21 billion) in the second quarter, marking a 41.1% decline from the previous quarter, as oil and other revenues rose, the finance ministry said on Thursday. Oil income rose by 1.28% to reach 151.734 billion riyals, the ministry said. The world's top oil exporter saw its total revenues climb by nearly 14.4% to 301.595 billion riyals in April to June, of which 149.861 billion riyals came from non-oil industries, while public spending, rose 4.28% quarter-on-quarter to 336.129 billion riyals. The kingdom's oil exports in May rose to their highest in three months, data from the Joint Organizations Data Initiative (JODI) showed, as the OPEC+ group - comprising OPEC and allies such as Russia - began to unwind cuts of 2.17 million barrels per day (bpd) in April with a boost of 138,000 bpd, followed by further increases in recent months despite falling oil prices. In the first quarter, the kingdom's budget deficit widened significantly on a year-on-year basis to $15.65 billion from $3.30 billion in the same period a year earlier, as oil revenues dropped 18%. Lower oil prices have weighed on Saudi Arabia's revenue, with the kingdom projected to post a fiscal deficit of around $27 billion this year. Still, the country has pushed forward with spending on a massive economic transformation programme known as Vision 2030 that aims to diversify its revenue sources to wean its economy off its dependence on oil. A 12-day air war between Israel and Iran in June amplified geopolitical risk across the Gulf and raised concerns over regional stability that might threaten to slow foreign investments and tourism in the kingdom, though it briefly spiked oil prices by up to 7% on June 14 when the war first broke. In June, the International Monetary Fund raised its 2025 GDP growth forecast for Saudi Arabia to 3.5% from 3%, partly on the back of demand for government-led projects and supported by the OPEC+ group's plan to phase out oil production cuts. Saudi Arabia's public debt stood at 1.38 trillion riyals by the end of the second quarter, the finance ministry said in its statement. ($1 = 3.7511 riyals)
Asharq Al-Awsat
21-07-2025
- Business
- Asharq Al-Awsat
‘Oil-for-Salaries' Deal Ends Dispute Between Baghdad and Erbil
The Iraqi federal government and the Kurdistan Regional Government (KRG) reached a landmark agreement on Thursday that ends a years-long dispute over oil revenues and public sector salaries. The deal, announced following an emergency cabinet meeting in Baghdad, covers oil production handover, non-oil revenue sharing, and the resumption of salary payments to KRG employees beginning with May 2025. According to a government statement, the agreement was based on a recommendation by a ministerial committee and aligned with Kurdistan's regional cabinet decision No. 285, issued on July 16. KRG Prime Minister Masrour Barzani confirmed the breakthrough, stating that the federal government had approved a 'mutual understanding regarding salaries and the region's financial entitlements.' Under the terms of the deal, the KRG will hand over all crude oil production - currently 280,000 barrels per day (bpd) - to Iraq's State Oil Marketing Organization (SOMO), with the exception of 50,000 bpd reserved for domestic consumption. This marks the first such commitment in more than two years, during which oil exports were suspended amid ongoing disputes and recent drone strikes targeting northern oilfields operated mostly by US firms. In return, the federal Ministry of Finance will pay $16 per barrel, in cash or in kind, to cover production costs. Revenues from locally consumed oil derivatives will go to the federal treasury after deducting production and transport expenses. On non-oil revenues, the KRG will transfer an initial 120 billion Iraqi dinars (approx. $92 million) to the federal finance ministry, representing an estimate of Baghdad's share for May. A joint audit team from both governments will verify and finalize the figures within two weeks. To resolve long-standing disputes over public salaries, a new joint committee will oversee the localization of KRG employee payrolls, in line with a ruling from the Federal Supreme Court. The committee is expected to complete its work within three months. As part of the agreement's first phase, the federal government will begin disbursing May salaries following confirmation from SOMO that the agreed oil volumes have been received.
