Oman oil continues its record high, as it crosses, today, Wednesday, the level of $71.
The Oman News Agency said: The price of Oman oil for delivery next August reached $71.38.
The price of Oman oil today witnessed a rise of (1.78) US dollars, compared to the price of yesterday, Tuesday (69.60) US dollars.
Oman crude oil price
It is worth noting that the monthly average price of Omani crude oil for delivery in June amounted to $63.10 a barrel, down by $1.33 compared to the price for delivery in May.
Some Omani accounts pointed out that the largest optimist did not expect oil prices to reach the levels of 60 dollars in light of the Corona crisis, and today it exceeds 70 dollars.
It is expected that this will reflect positively on the recovery of public finances.
Bloomberg: The Sultanate of Oman is in talks with banks to issue sovereign sukuk
In a recent context, the American Bloomberg Agency revealed that the Sultanate of Oman is in talks with banks to issue sovereign sukuk this year, as part of the financing plan announced by the government.
Oman expects the public debt-to-GDP ratio to rise to 82.7% in 2021, compared to 79.2% by the end of 2020, according to the prospectus for the planned bond offering.
According to the agency, Oman chose banks including Citigroup Inc and HSBC Holdings Plc in its second bond offering this year, taking advantage of demand among investors hungry for higher returns.
Oman successfully tapped into the international debt market in January, raising $3.25 billion.
The Sultanate benefits the most from the appetite for high-yield bonds, which are less sensitive to US interest rates.
Oman dollar bonds are up 4.4% this year, outperforming all of their Gulf peers, according to bloomberg Barclays indexes.
The Ministry of Finance said that as of the end of March it was more than halfway to meet its total financing needs of 4.2 billion riyals ($10.9 billion) for this year, thanks to borrowing and withdrawals from the sovereign wealth fund.
However, the country’s public finances, which for a long time remained among the weakest in the Gulf region, remain vulnerable to fluctuations in oil prices and turmoil caused by the global pandemic.
“Oman’s debt-to-GDP ratio could stabilize this year with higher oil prices, however the pace of debt buildup since 2014 remains worrying,” said Ziad Daoud, chief emerging markets economist at bloomberg.
Since assuming power in Oman in January 2020, Sultan Haitham bin Tariq has taken dramatic measures to help balance Oman’s fiscal balance and prepare it for the post-oil era.
Efforts have included cutting subsidies, imposing a value-added tax, and even planning for an income tax – which would be the first for an Arab Gulf state – as part of a medium-term plan to reform the economy.
And Fitch Ratings expects Oman to suffer a deficit of 6.1% of GDP this year and 5% in 2022, compared to more than 18% in 2020, as higher oil prices and fiscal measures taken by the government increase revenues.
In the first quarter, Oman’s deficit widened to 751.4 million riyals from 26.3 million riyals in the same period last year.
The fiscal deficit and external debt maturities will total $9 billion to $10 billion annually — or about 13% of GDP — from 2021 to 2022, according to Fitch.
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