Oman crude nears two-year high

By Samuel Kutty — MUSCAT: Jan 3: Close on the heels of the 2017 Budget, Oman crude oil prices for March delivery neared $55 per barrel for the first time in two years on Tuesday. With this rise, the oil price now stands $10 above the assumed budget price. The upward spike has also added almost 19 per cent to DME Oman crude since late September and more than 112 per cent from the lowest levels in more than a decade seen at the start of 2016. The rise in prices follows the recent Opec deal to cut crude oil production by nearly 1.8 million barrels per day kicked off at the start of this month.
The Sultanate has already made an announcement to cut oil production by 45,000 barrels a day. In the 2017 budget, oil revenue is  estimated at RO 6.11 billion at an assumed price of $45 per barrel. The oil revenue represents 70 per cent of total revenues.  With expected improvements in oil prices over 2017, GDP is projected to experience a growth of 2 per cent while non-oil activities are expected to rise by 4.7 per cent. GDP at current prices was reduced by 11 per cent over first-half of 2016, according to declared figures.