The Saudis export seven million bbl/day of oil, and their budget is balanced at $106/bbl. At $60/bbl, Saudi Arabia’s budget deficit is $118 billion/year: 12.7% of GDP! Saudi Arabia has foreign reserves of $750 billion to help withstand this. But at $60/bbl, the Saudis will consume 16% of their reserves/annum. The Saudis have till 2018 to crush fracking and see increased demand otherwise they must cut supply to boost prices.