Oman has money to blow. Thanks to higher oil revenues and strong growth across other economic sectors, the GCC sultanate recorded a RO163m increase to its budget surplus for the month of May.
This increase brought Oman’s total budget surplus for the first five months of this year to RO631m. It’s been quite the turnaround, as the same time period last year saw a budget deficit of RO890m that was driven by relatively lower oil prices. For comparison, Omani crude oil sold at an average price of $82 per barrel for the first five months of 2022 compared to $47 per barrel during the same period last year.
According to data from Oman’s Ministry of Finance, net oil revenues rose by nearly 38% to RO2.568b from January to May of this year, while net gas revenues jumped 140.8% to RO1.356b in the same time period.
Why it matters
Increased demand coupled with a global tightening in supply due to the crisis in Ukraine, has driven crude oil prices ahead of the break-even level for nearly all of the MENA region's producers. Should prices remain high, even the weakest economies will likely enjoy budget surpluses.
