Kuwait stashes $17.77bn in oil revenues during last two months

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wafra oil field
Giant boilers convert water to steam at the Wafra oilfield along the Saudi Arabia-Kuwait border.

A specialised economic report said Saturday Kuwait has earned oil revenues worth KD5 billion ($17.77bn) during the past two months despite considerable drop in oil prices.

The Al-Shall Economic Consultants report showed that the oil prices have taken a downward trend during the past period, but did not drop below the $100 per barrel benchmark.

“By the end of May 2012, the second month of the current fiscal year 2012/2013 ended with the average price of a Kuwaiti barrel of oil being over USD 100 for the 15th consecutive month, i.e. since March 2011, though with a tendency to decline, sometimes sharply. The lowest average price of a Kuwaiti barrel of oil during the month was at USD 101.47 per barrel on 24/05,” the report said quoting KPC sources.

“The average price of Kuwaiti crude oil for May scored $106.7 a barrel, by a significant drop of about US -10.2 or -8.7%, from April’s average of USD 116.9. However, May’s average is still USD 41.7 per barrel, or 64.2 percent, higher than the new hypothetical price estimated in the current budget at USD 65 per barrel. May 2011 price average for the last FY 2011/2012 scored about USD 107.5 per barrel. The last FY 2011/2012, which ended last March, achieved an average price of USD 109.9 for the Kuwaiti barrel of oil,” it added.

The findings also expected the oil revenues for this year to hit KD30 billion mark.

“Assuming production and prices would continue at their current levels – an assumption on the price side at least, which has nothing to do with reality – it is expected that the value of potential oil revenues for the entire current fiscal year would score some KD 30 billion, which is KD 17.2 billion higher than the budget estimate.

“Adding approximately KD 1.2 billion in non-oil revenues, budget revenues for the entire current fiscal year would score approximately KD 31.2 billion. Comparing this figure with the total expenditures allocations in the amount of KD 22.6 billion, the outcome will be achieving an approximate KD 8.6 billion surplus for the entire fiscal year 2012/2013”.

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