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Source:
الوطن
Saudi reserves bolster economy against energy inflation
The article focused on financial and operational measures that enhance the Saudi economy’s ability to confront a wave of inflation linked to rising energy and maritime shipping costs. These measures included maintaining foreign reserves amounting to approximately 1.83 trillion riyals, increasing the non-oil sector’s growth by 4.3%, and utilizing the East-West pipeline to transport oil to Red Sea ports as an alternative to routes affected by disruptions. The report also indicated that the world is experiencing inflationary pressures due to the suspension of tanker movements, with oil prices potentially exceeding $120 per barrel if oil flows through the Strait drop below 45%. Such a decline would lead to higher shipping and insurance costs, further fueling global inflation. Asian economies remain the most vulnerable to these risks, as they heavily depend on importing oil from the Strait of Hormuz, underscoring the need for alternatives and strategic stockpiles to mitigate the impact.
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