Oman crude trades at $91 and above
Published: 09:02 AM,Feb 07,2022 | EDITED : 02:02 PM,Feb 07,2022
crude
Muscat: The Oman crude traded at the Dubai Mercantile Exchange (April delivery) for $91.38 on Monday.
According to Dubai Mercentile Exchange, the Oman crude oil rose 73 cents compared from last Friday's $90.65.
It may be noted that the country's 2022 budget is based on $50 per barrel and the Ministry of Finance confirmed that a precautious approach despite the estimates of global agencies that the average price during 2022 is between $53 and $84. Oil and gas revenues are forecasted to be 68 per cent of overall receipts, The IMF is projecting a medium-term global economic growth of 3.3 per cent and forecasting the country’s GDP to grow around 2.5 per cent in 2021 and about 3 per cent average growth over the medium term.
The government has ordered a cap on fuel prices at October 2021 rates until the end of 2022. The government would bear the cost difference that may result from any potential increase in oil prices.
Giving priority to the implementation of projects that serve the economic and social objectives related to the productive sectors, especially the sectors of economic diversification, delaying the implementation of non-urgent projects, and giving great importance in return for the operation of projects that are completed during the year.
Speaking to the Observer, Joice Mathew, head of research at United Securities, said, “The current trend in oil prices is very good for the Omani economy as it will help the government to cut the deficit as the economy is still dependent on revenues from the oil and gas sector. It will also help accelerate government spending on various infrastructure and social projects that will help to create job opportunities and subsequently boost consumer confidence and spending.” On the cautious note, he said, “Worldwide economies are experiencing inflationary trends and runway oil prices, like around $100 per barrel, will slow down the economic growth or recovery in oil-importing economies.”
According to Dubai Mercentile Exchange, the Oman crude oil rose 73 cents compared from last Friday's $90.65.
It may be noted that the country's 2022 budget is based on $50 per barrel and the Ministry of Finance confirmed that a precautious approach despite the estimates of global agencies that the average price during 2022 is between $53 and $84. Oil and gas revenues are forecasted to be 68 per cent of overall receipts, The IMF is projecting a medium-term global economic growth of 3.3 per cent and forecasting the country’s GDP to grow around 2.5 per cent in 2021 and about 3 per cent average growth over the medium term.
The government has ordered a cap on fuel prices at October 2021 rates until the end of 2022. The government would bear the cost difference that may result from any potential increase in oil prices.
Giving priority to the implementation of projects that serve the economic and social objectives related to the productive sectors, especially the sectors of economic diversification, delaying the implementation of non-urgent projects, and giving great importance in return for the operation of projects that are completed during the year.
Speaking to the Observer, Joice Mathew, head of research at United Securities, said, “The current trend in oil prices is very good for the Omani economy as it will help the government to cut the deficit as the economy is still dependent on revenues from the oil and gas sector. It will also help accelerate government spending on various infrastructure and social projects that will help to create job opportunities and subsequently boost consumer confidence and spending.” On the cautious note, he said, “Worldwide economies are experiencing inflationary trends and runway oil prices, like around $100 per barrel, will slow down the economic growth or recovery in oil-importing economies.”