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.