S&P Upgrades Oman’s Credit Rating with 'Stable Outlook'

A gas production field in the Sultanate of Oman. (Reuters)
A gas production field in the Sultanate of Oman. (Reuters)
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S&P Upgrades Oman’s Credit Rating with 'Stable Outlook'

A gas production field in the Sultanate of Oman. (Reuters)
A gas production field in the Sultanate of Oman. (Reuters)

Global credit rating agency Standard & Poor’s (S&P) upgraded Oman’s credit rating to ‘BBB-’ with a stable outlook, hoping the country’s public finances will continue to strengthen.
“The outlook on the long-term ratings is stable,” the agency said.
The stable outlook balances the potential benefits of the government's fiscal and economic reform program against the economy's structural susceptibility to adverse oil price shocks.
S&P also noted that Oman’s fiscal position remains highly dependent on oil price movements, but resilience against shocks has strengthened.
Oil prices settled higher on Friday but fell on the week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China.
Brent crude futures settled up 38 cents, or 0.53%, at $71.89 per barrel. Front-month US West Texas Intermediate crude futures settled up 51 cents, or 0.75%, at $68.18.
On a weekly basis, Brent settled down around 3%, while WTI fell by around 5%.
In early May, the International Monetary Fund (IMF) said Oman’s near- to medium-term outlook is favorable and risks to the outlook are broadly balanced.
It expressed hope that a decline in oil prices and economic reforms would continue in the medium term.
On Saturday, S&P expressed optimism it could raise Oman’s ratings over the next two years if reforms lead to steady growth in Oman's GDP per capita supported by continued momentum in non-oil growth.
It then expected the government's fiscal and economic reform momentum will continue over 2024-2027 on condition of reducing external debt levels and accumulating liquid assets.
Last week, the Central Bank of Oman (CBO) reduced its repo rate for local banks by 50 basis points, bringing it down to 5.5% in line with other Gulf central banks’ decisions to cut their key interest rates after the Federal Reserve decreased US rates by half a percentage point.
S&P said it anticipates that the CBO will continue following the US Federal Reserve's interest rate policy.
The agency added, “We expect Oman will maintain its currency peg, supported by its accumulated government external assets of about 30% of GDP.”

 



Aramco CEO Calls for Rethinking Energy Transition Plans

Amin Nasser, CEO of Saudi Aramco. AFP file photo
Amin Nasser, CEO of Saudi Aramco. AFP file photo
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Aramco CEO Calls for Rethinking Energy Transition Plans

Amin Nasser, CEO of Saudi Aramco. AFP file photo
Amin Nasser, CEO of Saudi Aramco. AFP file photo

CEO of Saudi Aramco Amin Nasser has urged policymakers and energy executives to reassess energy transition strategies, emphasizing the need to shift focus away from unsuccessful elements.

Speaking at the CERAWeek conference in Houston on Monday, Nasser stressed the importance of continued investment in fossil fuels to meet global demand.

His remarks come as the administration of President Donald Trump pushes for maximizing oil and gas production, marking a stark contrast to the policies of former President Joe Biden, who had enacted legislation accelerating the shift away from fossil fuels in the US.

Meanwhile, European policymakers have slowed the rollout of clean energy initiatives and delayed climate targets amid rising energy costs following the 2022 Russia-Ukraine war. Major European oil companies have also scaled back plans for green technologies due to financial unviability.

“We can all feel the winds of history in our industry’s sails once again,” Nasser told executives from leading global energy firms, as reported by Reuters. “It is time to stop reinforcing failure,” he added, citing green hydrogen as an example of an energy transition focus that remains commercially unviable due to high costs.

Nasser argued that while new energy sources can complement fossil fuels, they cannot fully replace them. “The current strategy of prematurely shifting to immature alternatives has been highly disruptive. New energy sources cannot even meet the growth in demand,” he said.

To ensure adequate energy investments, Nasser called for deregulation and greater financial incentives for institutions to provide “unbiased funding” across all energy sources.

Aramco, the world’s largest oil company, invested over $50 billion last year in both conventional and renewable energy projects. The company aims to develop up to 12 gigawatts of solar and wind power by 2030.

In his speech at last year’s CERAWeek, Nasser similarly urged the industry to “abandon the illusion of phasing out fossil fuels,” reinforcing his stance that a balanced and pragmatic approach to energy transition is necessary for global stability.