Gulf states counting even more on oil price - The National

Big increases in public spending are pushing up break-even oil prices
for some Gulf states. Istockphoto

Big increases in GCC public spending this year are pushing up break-even oil prices for some states and raising concerns about the sustainability of government largesse.

In recent days, Oman and Saudi Arabia have unveiled spending plans for this year that rely on higher oil prices than last year in order to balance their budgets.

Oman's finance minister, Darwish Al Balushi, was quoted by Reuters as telling a news conference last week that the country required oil prices of US$104 per barrel this year to break even on a spending plan of 12.9 billion rials (Dh123.21bn). He did not give last year's break-even price but Deutsche Bank analysts estimate it was $91.60 per barrel.
Gulf states counting even more on oil price - The National