NCB projects decline in Saudi crude oil production

By MICHAEL EBOH with Agency Report

Saudi Arabia’s National Commercial Bank has projected a 400,000 barrels a day decline in the country’s average crude oil production by 2013.

This is even as the country is curbing supply to meet the Organization of Petroleum Exporting Countries’ (OPEC) output target.

The bank said the country is expected to produce around 9.5 million barrels a day on average this year, compared with 9.92 million barrels a day in 2012.

The bank said the country is expected to sell its Arab Light grade at a minimum price of $80 a barrel and at an average of $105.

It further stated that Saudi Arabia’s break-even oil price is estimated to be $72.8 this year compared with $67 in 2012.

The Arab world’s largest economy, requires a price of $75.2 a barrel to balance its budget in 2014, NCB said.