Saudi Arabia may avert its first budget deficit in eight years thanks to an increase in prices that could peg the kingdom's average price for oil at $50 a barrel in 2009, according to a study on Tuesday.

The Riyadh Chamber of Commerce and Industry said in a report that the finance ministry was 'conservative' in basing its budget outlook on oil at less than $40 a barrel last December amid a price slump.

'The ministry of finance based their projections on the price of oil for less than $40 per barrel, while it is expected that the average price of oil in 2009 will reach $50, and according to optimistic expectations it will exceed $60 a barrel,' the study said.

The world's top oil exporter projects a budget deficit of 65 billion riyals ($17.3 billion) for 2009, its first since 2001. The government did not outline its assumed oil price for the budget but analysts at the time said it suggested a price of around $37 a barrel for Saudi oil and $43 a barrel for US crude.

'The finance ministry's conservatism while producing the budget estimated the revenues to be a lot less than both prevailing and expected (oil) prices,' the study said.

Oil prices, which slumped from record peaks around $147 a barrel in July 2008 down to $32.40 a barrel in December, have rebounded and stood at $68 a barrel on Tuesday.-Reuters