oil and gas

Oman crude at all-time since crisis, touches $63

February 18, 2021

Muscat: Oman Crude was traded for $63.03 per barrel (April delivery), an increase of 59 cents compared to Tuesday’s price of $62.44, the Dubai Mercantile Exchange said.

It may be noted that today’s rate is $18 more than the price on which Oman’s State budget for the year was based.

As a result of fiscal and economic measures implemented in 2020 and economic diversification efforts including subsidy reforms to be implemented in 2021, public spending is estimated to be as low as RO 10.88 billion in 2021, decreased by 14 percent as compared with the expected spending of RO 12.66 billion in 2020. Aggregate public revenue is also projected to increase to RO 8.6 billion in 2021, based on an assumed oil price of US$ 45 per barrel, up by 2 percent as compared with the preliminary results of 2020.

The 2021 Budget deficit is estimated at about RO 2.2 billion i.e. 8 percent of gross domestic production (GDP). A 73-per cent of this deficit will be financed through external and domestic borrowing i.e. RO 1.6 billion, while the rest of the deficit, estimated to nearly RO 600 million, will be covered by drawing on reserves.
Public debt is projected to reach RO 21.7 billion by the end of 2021, and external borrowing represents 76 percent of overall public debt.
The government will continue building the infrastructure required to spur economic growth, and giving priority to the highly needed projects that serve economic and social objectives. In addition to expanding the participation of the private sector by enhancing its role in implementing and managing some projects and services.


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