Saudi Arabia’s 2015 state budget is set around an assumption related to the price of oil. The budget has been prepared after setting the price to be around $60 per barrel of Brent crude. In the past, the UAE has not revealed the oil prices they assume before drafting budget. Instead, the prices are estimated by other analysts who make assumptions about other variables such as planned oil exports and production for the year.
For the 2015 budget, the prices are estimated to be in the range of $55 to $63. These prices do not suggest that Saudi Arabia is expecting these prices next year as no one knows when the prices will start rebounding. The $60 assumption simply means that it is a baseline for the next year’s revenues. If the price of Brent crude is more than $60, there will be an increase in the revenue but if the price is less than $60, it means there will be less revenue than predicted.
The oil prices are a deciding factor in the Arabian country budgets. In past years, Saudi budgets were commonly based on their calculations on oil prices far below current levels.