The Gulf Cooperation Council’s borrowing requirements could drop to $10 billion over the next three years from about $270 billion, if oil prices continue to stay elevated, according to Goldman Sachs Group Inc.
If prices for the commodity average $65 a barrel and all else is equal, borrowing needs for the six countries comprising the council would drop 96% from what they’d be if oil traded at $45, Farouk Soussa, an economist at the bank wrote in a report.
Oil prices have rallied almost 80% since the start of November to about $70 a barrel as major economies roll out coronavirus vaccines and the OPEC cartel -- which is dominated by GCC member Saudi Arabia -- implements deep production cuts.
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