• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 14 minutes Saudi Fund Wants to Take Tesla Private?
  • 18 minutes California Solar Mandate Based on False Facts
  • 3 hours Starvation, horror in Venezuela
  • 3 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 27 mins Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour Oil prices---Tug of War: Sanctions vs. Trade War
  • 6 hours Why hydrogen economics is does not work
  • 2 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 10 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 9 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 hour Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 15 hours What Turkey Sanctions Are Really About
  • 14 hours Saudi Production Cut or Demand Drop?
  • 12 hours Merkel, Putin to discuss Syria, Ukraine, Nord Stream 2
  • 8 hours Saudi Aramco IPO Seems Unlikely
Canada Frees Itself From Saudi Oil Imports

Canada Frees Itself From Saudi Oil Imports

Political differences have created a…

Buying The Dip In Oil And Gas

Buying The Dip In Oil And Gas

Being an investor in the…

Qatar Comfortable With Current Oil Prices As Fiscal Pressure Drops

Qatar oil

Higher oil prices since the OPEC deal have eased some of the burden on Qatar, whose government may not issue international debt this year, finance minister Ali Sherif al-Emadi said on Tuesday.

We may not issue a bond this year given where oil prices are - right now we are close to break-even,” Reuters quoted Emadi as saying at a briefing.

Qatar – which ran a rare budget deficit in 2016 due to the low oil prices – expects the deficit to drop this year. The 2017 budget has pegged oil prices at around US$45, and seeing where oil prices are now, the deficit this year may be close to zero, Emadi noted.

Nevertheless, Qatar will continue to lower government spending and reduce government operating expenses, the minister added.

In order to keep strict fiscal discipline, Qatar would not be drawing down its sovereign wealth fund to finance its deficit, the minister said.

Qatar is spending around US$500 million weekly on capital projects, and it is investing heavily in preparations to host the 2022 World Cup.

The minister sees the economy of the world’s largest LNG exporter growing by between 3.4 percent and 3.5 percent in 2017.

In its latest mission assessment, the International Monetary Fund (IMF) also expects Qatar’s GDP growth at 3.4 percent this year, on the back of expansion in the non-hydrocarbon sector due to World Cup-related spending and supported by additional output from the new Barzan gas project.

Related: Saudis To Raise $10 Billion Ahead Of Aramco IPO

Unlike many other oil and gas exporters, Qatar financed its fiscal deficit mostly via domestic and foreign borrowing without using its sovereign wealth fund. Qatar has already raised a total of US$14.5 billion of external debt and issued US$2.6 billion of domestic bonds and Islamic bonds, or sukuk, the IMF said.

In a sign that Qatar is looking to seize growth opportunities, Qatar’s state-run flagship company Qatar Petroleum seeks to grow its LNG production and reserves outside Qatar, according to CEO Saad al-Kaabi.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News