Saudi Savings Fall

Opec’s largest producer Saudi Arabia continues to run down its net foreign assets as it maintains its elevated level of expenditure at a time of reduced oil revenue and depressed oil prices.

Net foreign assets fell to $680bn at end-May, down $6bn on April and $66bn (9%) from their August 2014 peak of $746bn.

With the kingdom’s (and Opec’s) policy of maximizing market share rather than cutting output to support prices, Saudi Arabia’s...