Rising crude oil prices are expected to lower oil-rich Gulf nations’ need to sell Islamic bonds, according to Moody’s Investors Service.
Higher oil prices will lead to lower sukuk issuance in 2022.
Sukuk is the name for interst free bonds.
That’s driven largely by lower financing needs among Gulf Cooperation Council countries, according to a report by analyst Ashraf Madani.
Saudi Arabia, which needs oil pricing at about $72 a barrel to balance its books, said it expects to record a surplus this year.
The ban on Russian oil is forcing the U.S. to revisit its alliances, potentially paving the way for sanctions on Venezuelan oil to be lifted.