Despite Saudi's strong efforts in cutting its budget deficit, the economy will still be running a budget deficit at 7.7% of GDP. Oil prices will need to move higher for Saudi's 2030 vision to play out, and Saudi Aramco's IPO value will also be dependent on the price of oil at that time. With the second largest oil producer in the world's incentive aligned for higher oil prices, we think WTI will reach $60 early 2017 and $70 by Q3 2017.
AKK Price at posting:
0.5¢ Sentiment: None Disclosure: Held
