(MENAFN) According to a new report by Amwal, Qatar may register a deficit of USD5 billion-USD10 billion in its budget if oil prices remain around USD50 in 2015 for the entire year, as oil prices continue in their plunge and reach an almost six-year low, Gulf Times reported.
Despite these predictions, Amwal said that the massive sovereign wealth fund (SWF) assets provide the country with sufficient cushion to support capital spending for infrastructure, as the SWF has assets worth USD115 billion, adding that if oil prices remain at USD57 a barrel, then the situation will break even.
Even at lower oil prices, the firm said that it does not expect current expenditure, excluding capital spending, to be immediately affected due to the Gulf Co-operation Council (GCC) countries having significant savings to weather a period of low oil prices.
"The $100 level was too high. We do believe that the current $50 a barrel is likely below oil's fair value because long term analysis adjusting for the dollar volatility and time value of money suggest oil price is below long term average," Amwal said in its report.
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