Oman to base 2010 budget on $50 oil price

Oman to base 2010 budget on $50 oil price

Oman’s Ministry of National Economy announced it will base its 2010 budget on an average oil price of $50 a barrel…

October 11, 2009 3:25 by kippreport

Oman’s Ministry of National Economy announced it will base its 2010 budget on an average oil price of $50 a barrel, reports Reuters.

The projection is only $5 higher than the price it forecast for its 2009 budget, prompting analysts to question the government’s conservative estimates.

“I see limited spending in 2010 and that does not inspire investors’ confidence,” Mubarak al-Arami, managing director of Kanz Investment Holdings.

“We need to see the government propping up its budget, much higher than in 2009, in this uncertain global climate.”

Tags: 2010, budget, oil, Oman

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1 Comment

Oman on October 12, 2009 9:15 pm

The Oman government has usually based it assumed oil price appreciably below what actually come in.
Given the uncertain global climate; Oman has already spent a year ‘propping up its budget’.
If the budget is propped up continually the prop itself with be spent.
This might be a good opportunity for companies to focus on profitability as opposed to bail outs and subsidy.