Saudi Arabia has long prided itself on being the lowest-cost oil producer in the world—and has taken maximum advantage of this fact. Now, with ambitious spending plans for a diversified economy, that lowest cost is becoming less relevant. It’s the breakeven cost of oil that matters. And that’s going up. Earlier this year, the International Monetary Fund warned that Saudi Arabia would need an oil price of $96.20 per barrel to break even. Anything less, the IMF said, would mean another annual deficit for the Gulf economy. The IMF…
