Mubasher: Saudi Arabia may need oil prices to range between $80 and $85 per barrel (pb) to achieve balance in its budget for2019, a top International Monetary Fund (IMF) official has said.

In 2019, the kingdom’s oil prices will be determined through the performance of non-oil revenues, output levels, and revenues which were transferred to be included in budget, IMF director for the Middle East and Central Asia Jihad Azour told Reuters.

 “If everything remains equal, the 2019 budget shows a breakeven point would be around $80-$85,” the IMF official explained.

Earlier this week, UAE energy minister Suheil al-Mazrouei said that demand and supply in the oil sector needed to be achieved during the first quarter of 2019, noting that “We are removing enough oil to correct the market.”

The Emirati top official said during the three-day World Government Summit that members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) had begun executing the agreement to reduce production by 1.2 million barrels per day to bolster crude prices.

In mid-2014, global oil prices retreated to as low as $30 pb from over $100 pb driven by an excess in supplies and lower demand.

Despite the forecasts and continuous agreements by OPEC members and non-members, oil prices have seen sharp movements, nearing $85 pb in October but falling once more to around $60 pb.

By 10:16 am GMT on Tuesday, Brent crude gained 0.76% to $61.98 pb, while US Nymex saw a similar increase to $52.81 pb.