Bahrain to Resume Payments to Reserve Fund at Oil Prices Over $80 - Bloomberg

Bahrain to Resume Payments to Reserve Fund at Oil Prices Over $80 - Bloomberg

Bahrain will resume making payments into its rainy day fund, doubling the amount it contributes at oil prices over $80 a barrel, as it looks to rebuild savings tapped to handle the economic impact of the pandemic.

The country, one of the most heavily indebted among the oil producers of the Middle East, will put $2 into the Future Generations Reserve Fund for each barrel of crude sold at over $80, according to a statement. It will set aside $1 when oil is over $40 and pay $3 if it exceeds $120.

Global benchmark Brent has mostly traded above $100 following Russia’s invasion of Ukraine in late February.

In a stark turnaround from two years ago, soaring crude prices are transforming the fortunes of the petrostates in the Gulf, generating a windfall that’s now allowing the region’s most vulnerable economies to rebuild finances, pay down debt and raise spending.