Oil price rise postpones Omani budget crisis, but may also discourage reforms

After another rocky year, Oman’s budget was rescued by the global rise in crude prices towards end-2017, which helped to bail out an economy where 70% of total revenues still come from oil and gas, during a period when debt has started to mount up (GSN 1,043/8, 1,040/8). Omani crude achieved an average $56.21/bbl on the Dubai Mercantile Exchange in December, compared to a 2017 budget assumption of $45/bbl oil; the H2 17 crude price hike means the annual average will have been about $50/bbl.