Saudi Arabia: Oil Reveniues Increase, Budget Surplus

Saudi Arabia is poised to finish the year with a 54 percent increase in oil revenue and a budget surplus of $55.5-billion due to high globaloil prices, a Riyadh bank reported on Tuesday.

It will be the second straight year that the kingdom enjoys record oil revenues. The high prices that produced this year's windfall were driven by hurricanes and the limited spare capacity among producers, the Samba Financial Group said in a report made available in Dubai.

"The Saudi economy is booming, and it is at its best performing period ever," the report said. The bank said Gross Domestic Product was expected to rise 6.8 percent, and this had been bolstered by a nearly 8 percent expansion in the non-oil sector.

Samba predicted Saudi export revenues would reach $163 billion, up from 2004's record of $106-billion. The value of Saudi crude will average $51 a barrel for 2005. Last year's average was $35 a barrel. Production should average 9.5 million barrels a day this year, up from 9 million barrels per day in 2004, the bank forecast.