Oman’s state coffers are witnessing a financial surplus unseen in recent times, as it marked an increase of RO18mn in revenues in January 2022, when compared with the same month in 2021.

This means the Sultanate’s state revenues for the month of January 2022 currently stands at RO803.3mn. OERLive also learns that the state’s public spending for the month increased by 9.59 per cent to touch RO785.3mn.

Meanwhile, debt service provisions stood at RO162.4mn, as per the monthly financial bulletin issued by the Ministry of Finance.

The Ministry report further elucidated that the financials for the month of January 2021 ran into a deficit of RO282.9mn.

As per economists, this “staggering surplus” can be attributed to rising oil and gas prices, amid a dark and tension-filled political environment in Eastern Europe.

Khaled Al Zaid, a financial economist specialising in the Middle East’s oil and gas sector, said: “As oil and gas prices rise globally, the Middle East – and the GCC in particular – will reap quick rewards.

“While it is impossible to correctly guess when the oil prices will hit the ceiling, we can expect some form of coagulation of production from OPEC and OPEC+ countries. I don’t think the prices will go beyond US$150 per barrel at this point, but some experts are now talking about the US$200 per barrel mark.

“That’s unprecedented at this point, but we’ll have to keep a close eye on the unfoldings in Ukraine. After all, the expense at which we’re witnessing this inflation is devastating.

“It’s not to say the prices will stay at this level across this year. I anticipate the prices to stabilise a lot more when the tensions ease.

He then added: “The whole world is also keeping a close eye on Iran. Some sources say that Iran has been shipping lesser crude to China as it gears up for the lifting of sanctions.

“I expect a drop of US$2 per barrel in the global market if Iran is back in the trade.”