Weak oil prices are adding to pressure on Saudi Arabia’s vast spending programme as Riyadh prepares to unwind crude production cuts starting on Tuesday, which is likely to push prices lower.
Economists said the kingdom would probably need to slash expenditure by more than the 3.7 per cent annual drop planned for 2025, as oil prices linger near $70 a barrel — far below the level that would help the country balance its books — and state-owned giant Aramco cuts dividends.
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