Even before the collapse of the OPEC+ talks last Friday, Saudi Arabia’s finance ministry had asked government agencies to propose a 20-30 percent cut in their budgets due to the oil price slide, Reuters reported on Wednesday, citing four sources with knowledge of the plans. Before the OPEC+ meeting last week, the Saudis were already planning government spending cuts, including via delays in projects and contract awards, as the coronavirus outbreak is dampening the oil demand outlook and weighing on oil prices and on Saudi oil revenues. The Kingdom was also expecting tough negotiations with its now former ally Russia about deepening the OPEC+ production cuts, Reuters’ sources said. Now the oil price crash after the OPEC+ break-up and the all-out oil price war between friends-turned-foes Saudi Arabia and Russia makes Saudi budget spending cuts even more urgent, considering the fact that the Kingdom needs oil prices at above […]