Gulf borrowing needs could fall to $10bn if oil stays above $65, says Goldman Sachs


DUBAI: The Gulf Cooperation Council’s borrowing needs could fall from about $270 billion to $10 billion over the next three years if oil prices stay high, according to Goldman Sachs Group.
If prices for the commodity averaged $65 a barrel, all else being equal, the borrowing needs of the six countries that make up the council would fall 96 percent from what they would be if oil were at $45. dollars, Bloomberg reported, citing Farouk Soussa, an economist at the bank.

Oil prices have risen nearly 80 percent to around $70 a barrel since early November.

The price outlook was further boosted last week as OPEC+ producers agreed to extend production cuts.

The Gulf States rely heavily on strong oil prices to balance their budgets and fund large infrastructure projects.

They raised about $63 billion worth of bonds and sukuk last year, Bloomberg said.

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