Reuters quoted Mr Ahmad Mekki national economy minister of Oman as saying that Oman expects oil prices to range between USD 70 per barrel and USD 80 per barrel in 2010, some 40% to 60% more than the USD 50 estimate the country is using for to calculate its budget.

He said that the independent producer is aiming for oil output of 870,000 barrels per day up from a target around 800,000 barrels per day in 2009. If Oman reaches both targets, it would mark three consecutive years of oil output growth after several years of decline.

Mr Mekki said that “The 2010 budget has been set for production of 870,000 barrel per day and we see oil prices in the range of USD 70 per barrel to USD 80 per barrel.”

He said that if oil prices stayed at that level, Oman would see a much higher increase in revenues than that projected in the budget it unveiled on Tuesday. The budget assumed revenues of OMR 6.38 billion in 2010, 14% higher than in 2009. The USD 50 assumption for oil prices in 2010 is up USD 5 from Oman's budgeted oil price in 2009.

(Sourced from Reuters)