Oman could see a record budget surplus in 2022 as oil prices surge

Oman could see a record budget surplus in 2022 as oil prices surge

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The Russian invasion of Ukraine is driving energy prices up and as an oil producer, Oman could well see a record budget surplus this year to give its economy a huge boost to wipe out the predicted 2022 deficit.

With US President Joe Biden calling for sanctions against Russian crude oil exports joined by European countries such as the UK, Germany and France, oil producers, including the Sultanate, are set to hugely benefit from it.

In the 2022 fiscal budget, Oman forecast a 1.55 billion rial deficit, a 27 per cent increase from the actual 1.2 billion rial deficit for 2021.

Crude oil prices peaked at $130 per barrel last week as Russian troops keep pounding Ukraine and turn a blind eye to the international community’s plea to stop the invasion. Oil analysts are already predicting the crude oil prices could touch $150 per barrel in March and that could signal an economic disaster for oil reliant economies.

But Oman, with an average production of about 970,000 barrels a day, this means that the Sultanate could well post an annual surplus this year for the first time in a decade.

“It is good news for Omani economy with oil prices above $100 threshold, especially the