Even before the latest Saudi-instigated oil war crashed oil prices, Oman had a budget breakeven price per barrel of Brent of over US$85, with a senior legal source in Abu Dhabi focussed on the oil industry spoken to by OilPrice.com at that time stating that the Sultanate needed at least US$7 billion ‘very quickly’ to avoid extremely negative financial consequences. Given the twin facts that Oman only has around five billion barrels of estimated proved oil reserves (barely the 22 nd largest in the world) but is still dependent on the hydrocarbons sector for over 80 per cent of its national budget revenues, the recent relatively moderate rebound in oil prices has done little to alleviate Oman’s perilous economic position. Last week’s downgrading of Oman by global ratings agency, Moody’s Investors Service, to Ba3 – three levels down into non-investment (junk) status – after S&P Global Ratings’ downgrade in […]