KUWAIT CITY, 1 October 2005 — Kuwait earned a hefty 6.32 billion Kuwaiti dinars ($21.6 billion) in oil income six months into its 2005- 06 fiscal year, the independent al-Shall Economic Consultants said yesterday.
The earnings, if projected out for the year, would amount to some 8.75 billion Kuwaiti dinars ($24.7 billion) above state budget estimates for oil sales for the year, the consultants said.
Hurricanes Katrina and Rita, which heavily impacted oil industry in the southern United States, were partially responsible for the steep prices that have pushed the average price for Kuwait Export Crude (KEC) up to $55.9 per barrel for September, an increase of around 2.4 percent over the August price of $54.6.
Kuwaiti crude sold for an average of $50.2 per barrel during the first six months of the fiscal year that began April 1, the report. During fiscal 2004-05, KEC had averaged $35.1.
The six-month oil earnings were based on Kuwait pumping full out at 2.5 million barrels per day, although the emirate’s quota for the Organization of Petroleum Exporting Countries as of last July was 2.24 million.
The figure could also be further upwardly adjusted since the economists did not account for income generated from the sale of the more expensive refined products. Kuwait refines more than one third of its crude into downstream products.
If production and prices would remain at relatively constant levels, Kuwait could stand to earn at least 12.65 billion dinars ($43.32 billion) in oil revenues for the entire year, the report said.
