Gulf News reported that Saudi Arabia would be able to cope with Brent crude oil at an average price of USD 80 per barrel next year.

According to consultant Petromatrix GmbH, Brent futures traded at about USD 113 per barrel on London's ICE Futures Europe exchange. In April, Bank of America Corporation estimated that the world's biggest crude exporter needed a price of USD 95 this year to cover increases in government spending.

Mr Petromatrix said that Saudi Arabia is likely to finish 2011 with a significant budget surplus. The kingdom boosted shipments earlier this year to compensate for a halt in Libyan supplies.

Mr Olivier Jakob MD of Petromatrix said that "The kingdom could in theory afford to see Brent at USD 70 and still be within the budget constraints over 2 year period."

(Sourced from Gulf News)