DUBAI, 29 July 2003 — The absence of Iraqi oil from world markets since March will likely spur the Saudi economy on to its best year since 1981 in terms of growth, exports, balance of payments and budget, said a report yesterday. Total Saudi crude output is estimated to have averaged more than 9.1 million barrels per day (mbpd) in the first six months of 2003, up 1.7 mbpd on the same period in 2002, the Middle East Economic Digest (MEED) says in its latest quarterly edition of the Saudi Arabia Market Report.
“Saudi Arabian light has been trading at an average of more than $27 a barrel ... for the whole of the first half of 2003,” the MEED report said.
“The likely outcome is a remarkable surge in the Kingdom’s export earnings in the first half of 2003,” MEED said. “It is probable that the Kingdom recorded oil export earnings in January-June of more than $40 billion. “Oil export earnings in 2003 will exceed $80 billion, about 37 percent more than our estimate for 2002.”