Kuwait’s oil income well over budget estimates
KUWAIT CITY: Oil-rich Kuwait has earned some $11.5 billion in oil income in the first five months of the current fiscal year, exceeding revenue estimates for the whole year, a report said on Saturday.
Revenues in the state budget for fiscal year 2004/2005, which projects a deficit of $10.1 billion, are estimated at $11.25 billion. Expenditures are projected at $21.35 billion.
Oil revenues, calculated at a conservative price of $15 a barrel, are estimated at $9.3 billion and non-oil revenues at $1.95 billion in the fiscal year, which runs from April 1 to March 31, 2005.
Al-Shall Economic Consultants, an independent think-tank, said the average price for Kuwaiti crude in the months between March and August was $34 a barrel, $19 over the budget price.
The average price of Kuwaiti oil in August rose to $37.7 a barrel, $3.9 over July’s price and about $7 over April’s average, it said.
Al-Shall estimated that the emirate’s oil revenues would touch $28 billion during the year if the average oil price remains unchanged, and that total public revenues would exceed $30 billion.
Kuwait will post a surplus in excess of $9 billion in the current fiscal year provided all the projected expenditures are spent, it said. But judging by previous years, Kuwait is expected to spend between 10 per cent and 15 per cent less, thus the surplus is expected to be much higher.
Kuwait’s OPEC production quota was raised to 2.087 million barrels per day (bpd) on August 1, but the emirate has been producing at full capacity of 2.4 million bpd for a long time.
Last year, Kuwait posted revenues of $23.1 billion, its largest in more than 25 years, and boasted a surplus of $7.4 billion, its fifth straight year in the black, according to preliminary figures.
Kuwait has made a total net surplus of $14.1 billion in the past five fiscal years, in addition to $9.55 billion deposited in the Kuwait Fund for Future Generations, which has assets worth some $80 billion.
The Fund is managed by the state-run Kuwait Investment Authority. Its holdings are mostly in Europe and the United States in real estate, stocks and other long-term investments. Its profits do not figure in the budget.
Quelle: Oil Prices