Kuwait has seen its oil revenues exceed expectations as it nears the end of the fiscal year 2023/2024. The average price of a barrel of Kuwaiti oil during the first nine months of the fiscal year was estimated to be around $85, which is $15 higher than the projected budget price of $70, as reported by Al-Rai Daily.
Although Kuwait’s oil production experienced a decline during this period, dropping from the anticipated 2.676 million barrels per day to approximately 2.548 million barrels per day in May, this reduction was due to Kuwait’s voluntary production cuts of around 128 thousand barrels per day. These cuts were made to support price stability within the OPEC alliance.
Despite the decrease in production, Kuwait managed to export an average of 2.2 million barrels per day, accounting for domestic consumption. As a result, Kuwait’s oil revenues for the first months of the fiscal year 2023/2024 are estimated to reach about 1.73 billion dinars, with an average barrel price of $85.5 in December.
Examining the month-by-month breakdown of Kuwait’s oil revenues reveals fluctuations. In May, the average price of a Kuwaiti barrel was $77.3, contributing to oil revenues of approximately 1.62 billion dinars. June recorded the lowest average price at $76.6 per barrel, leading to reduced oil revenues of around 1.55 billion dinars.
July saw a slight increase in the average price to $82.4 per barrel, resulting in oil revenues of about 1.73 billion dinars. August witnessed the highest oil revenues, estimated at 1.86 billion dinars, driven by an average barrel price of $88.7. September and October stood out as significant months for Kuwait’s oil revenues. September had the highest average barrel price of $95.7, generating oil revenues of 1.94 billion dinars.
Maintaining a high average price at $92.8, October also contributed to oil revenues of 1.944 billion dinars over the 30-day and 31-day periods, respectively. In November, the average price of a Kuwaiti barrel was $86.4, resulting in oil revenues of about 1.75 billion dinars. As for December, the average price until the 22nd day of the month stood at approximately $79.8. Assuming this average remains constant until the end of December, oil revenues during the month are expected to reach around 1.67 billion dinars.
Overall, Kuwait’s oil revenues for the first nine months of the current fiscal year are estimated to be about 15.8 billion dinars, equivalent to approximately 92% of the total oil revenues projected in the annual budget. As Kuwait approaches the end of the fiscal year, the country has surpassed its initial revenue expectations, driven by higher-than-expected average oil prices. These increased revenues may have a positive impact on Kuwait’s economic outlook and fiscal stability in the coming months.
It is worth noting that Kuwait’s oil industry plays a crucial role in the country’s economy, accounting for a significant portion of its revenue. The fluctuations in oil prices and production levels have a direct impact on Kuwait’s fiscal health. As the country navigates the challenges and opportunities presented by the global oil market, its ability to adapt and manage its resources effectively will be key to maintaining stability and growth.
Source: TimesKuwait
