Kuwait News

Oil revenues exceed expectations, reaching 92% of annual budgeted amount

Kuwait’s oil revenues have surpassed expectations as the country 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, marking a $15 increase compared to the projected budget price of $70, reported Al-Rai Daily.

However, Kuwait’s oil production saw 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 to support price stability within the OPEC alliance.

Despite the production decrease, 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.

The month-by-month breakdown of Kuwait’s oil revenues shows 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.

October maintained a high average price at $92.8, leading to oil revenues of 1.944 billion dinars over the 30-day and 31-day period, 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 surpasses initial revenue expectations, driven by higher-than-expected average oil prices. These increased revenues may positively impact the country’s economic outlook and fiscal stability in the coming months.

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