Saturday, December 13, 2014

Oil price fall hits Oman

1. Oman has drawn up  its 2014 budget on the average price of oil of $85 per barrel and the deficit was forecast at OMR 1.8 billion. (1 OMR = $ 2. 58 )

2. The deficit is  6 per cent of its Gross Domestic product (GDP) and 15 per cent of its total revenues expected to be OMR 11.7 billion. 

3. Last year, Oman earned an average $116 per barrel from its oil production.

4. S&P lowered its long-term outlook for Oman to negative from stable. The agency currently has  Oman with a  rating of A.

5. Oman has few oil reserves. Extracting oil is a costly affair in Oman. So it may not be worthwhile to drill anymore. 

6. The Sultan Of Oman is reportedly unwell and away in Germany on medical  treatment. Absence of his direct presence will aggravate the economic impasse because for several decades they are used to his wisdom.  


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