Oil & Gas Higher oil prices wipe out Oman’s 2024 budget deficit By Saleh Al-Shaibany May 5, 2025, 2:44 PM Alamy via Reuters Unexpected high oil prices allowed Oman to overcome its predicted budget deficit Oman oil price surplus Reduced debt reported Challenges ahead say IMF Higher-than-budgeted oil prices wiped out Oman’s OR640 million ($1.7 billion) deficit for 2024, according to the finance minister, although the IMF has warned that the Gulf state still faces economic challenges. Oman posted a surplus of $1.4 billion last year as it sold oil at an average price of $82 per barrel, a third higher than the forecast of $60 per barrel on which the 2024 budget was based, Sultan Al-Habsi, the minister of finance, told Oman Television. The surplus will help reduce Oman’s debt, which currently stands at $40 billion, the minister said. Oman’s real GDP at constant prices increased by 1.7 percent to $100 billion for the year 2024, compared to the previous year, according to the National Centre for Statistics and Information (NCSI). Duqm refinery fuels $6.5bn growth in Oman’s oil exports Oman’s foreign trade up thanks to oil and gas Oman’s oil sector received $12bn investment in 2024 The IMF warned in January in an Article 4 consultation that “intensifying geopolitical tensions as well as a global slowdown, particularly in China, could adversely affect trade, tourism and FDI, putting a drag on domestic growth and external and fiscal positions”. Hydrocarbon exports rose by nearly $6.5 billion last year due to a surge in sales of refined products following the commissioning of a large oil refinery, according to finance ministry data published by the Nation Centre for Statistics and Information. Oman sold its crude oil at an average price of $75.3 per barrel in the first quarter of 2025, down 5.5 percent from the same quarter last year. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
