Saudi Arabia Cuts Q2 Budget Deficit to $9.1 Billion on Higher Oil Revenue

The Kingdom’s second-quarter deficit narrowed sharply as crude prices rose 28% quarter-over-quarter, offsetting a 3.5% drop in spending. Saudi Arabia reported a $9.1 billion budget deficit for the second quarter, down from 125.7 billion riyals in the first quarter. The fin

The Kingdom’s second-quarter deficit narrowed sharply as crude prices rose 28% quarter-over-quarter, offsetting a 3.5% drop in spending.

Saudi Arabia reported a $9.1 billion budget deficit for the second quarter, down from 125.7 billion riyals in the first quarter. The finance ministry attributed the improvement to a 28% jump in oil revenue amid higher crude prices, despite a 3.5% decline in government spending.

The deficit contraction marks the steepest quarterly improvement since the pandemic. First-quarter figures had reflected lower oil output and elevated spending, while the latest print aligns with a broader rebound in global energy markets.

No immediate market reaction was disclosed in the release.

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