Qatar Able to Balance 2018 Budget With Oil Price Padding of $23.8

      Published on Saturday, 5 January , 2019      189 Views     
Qatar Able to Balance 2018 Budget With Oil Price Padding of $23.8

  • Government

Qatar has a cushion of around $23.8 per barrel to balance its 2018 fiscal budget currently, according to Kamco, a Kuwait-based regional economic think-tank.

Qatar and Kuwait have lower breakeven oil prices compared to average oil prices YTD (year-to-date), Kamco said in a report.



Fiscal breakeven – which is the oil price needed to balance the budget – published by the International Monetary Fund for 2019 for all the Gulf Co-operation Council (GCC) countries remain below their corresponding 2018 estimates,

which does offer flexibility in choosing a more balanced fiscal stance, it said.

“Nevertheless in 2019, stable oil prices would be crucial for the GCC to keep GDP (gross domestic product) growth intact and for the region to maintain its favorable balance of payments and fiscal manoeuvrability,” it added.

Highlighting that IMF’s oil production target for 2019 likely to be revised lower post Opec+ meeting in Vienna; Kamco said the oil production estimate for the GCC was raised by the IMF for 2018, ascribed to the production increase from Saudi Arabia (+166tb/d), the UAE (+87tb/d) and Kuwait (+39tb/d) in 2018, as the Opec+ increased production since June-2018.

“We do see the possibility of downward revisions to the IMF’s 2019 oil output estimate for the GCC  region, given that the market expects the Opec+ meeting in Vienna next month to result in an extension of production cuts into 2019. Separately,  the GCC oil exports also followed a similar trend and were pushed up as compared to in May-2018  estimates,” it said.

Oil exports from the region were raised from 12.55mb/d to 12.56mb/d for 2018. The export estimate for 2019 was increased from 12.93mb/d to 13.24mb/d, likely considering the higher production volumes, according to Kamco.

As oil prices are down more than 20% from the highs of the year, the market expects Opec+ to decide in December 2018 on continuing oil production cuts in order to support oil prices.

Kamco expects the IMF’s real oil-GDP estimates for the GCC in 2019 to be “too optimistic”, as the forecast for 2019 currently factors in an oil production growth of 0.58mb/d from 2018, leaving potential for downward revisions.

“However, we expect the GCC to continue its fiscal rebalancing, and diversification efforts to boost the non-oil economy and private sector growth,” it said.



According to Washington-based Institute of International Finance, Qatar’s fiscal and external breakeven oil prices are expected to be $60 per barrel and $44 per barrel respectively this year.

Keywords:
Category Government | 2019/01/05 latest update at 9:00 AM
Source : Albawada | Photocredit : Google
190 Views
Comments Add comment



Related Articles

The editorial staff of Qatar Today would like to give all of its readers from Gulf and Qatar and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Qatar Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Qatar, the Gulf and the world.


HH the Amir Inaugurates Water Security Reservoirs Project Emir

HH the Amir Inaugurates Water Security Reservoirs Project

HH the Amir Sheikh Tamim bin Hamad Al Thani inaugurated the Water Security Mega Reservoirs Project, during a…

Qatar Emir Skips Gulf Meet Hosted By Saudi Arabia Doha News

Qatar Emir Skips Gulf Meet Hosted By Saudi Arabia

Qatar’s emir skipped a summit in Saudi Arabia on Sunday with fellow Arab Gulf leaders whose boycott of…

Qatar’s emir receives invite from Saudi king to attend Gulf Arab summit Emir

Qatar’s emir receives invite from Saudi king to attend Gulf Arab summit

Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, has received a written invitation from Saudi Arabia’s King Salman…

Turkey’s Erdogan hails Qatar emir as ‘friend in times of trouble’ Emir

Turkey’s Erdogan hails Qatar emir as ‘friend in times of trouble’

Turkey’s president hailed close ally Qatar as a “friend in times of trouble” as he met with the…

GULF TV

Popular in GULF TV

About DFI

3147 Views

Doha Film Institute is dedicated to film appreciation, education, and building a dynamic film industry in Qatar that…

Latest videos in GULF TV

Events

Qatar Events

Lifestyle

Life

Culture

Culture News

Sport

Sport

Science & Technology

Science & Technology

Government

Government News