KUWAIT CITY, 18 February 2007 — OPEC member Kuwait posted $46 billion in revenue in the first 10 months of the 2006-2007 fiscal year, up 56 percent on budget estimates due to strong oil prices, a report said yesterday.
The figure is up 20 percent on $38.3 billion posted in the same period last fiscal year and just slightly below the $47 billion boasted in the entire year, Al-Shall Economic Consultants said. Oil revenues reached $43.6 billion, up 20 percent on oil income in the same period last fiscal year and 62.7 percent higher than the budget projection of $26.8 billion, Al-Shall said, quoting official figures.
Oil income in the budget, which contributes 95 percent of total revenues, is calculated at a conservative price of $36 a barrel while the actual price of Kuwaiti oil has averaged around $59.
The budget for the year, which ends on March 31, is projecting income at $29.5 billion and spending at $37.6 billion, leaving a projected deficit of $8.1 billion. Local economic reports however have forecast that Kuwait will post a surplus of around $17 billion. This would be Kuwait’s eighth straight year of windfall.
In the fiscal year that ended March 31, Kuwait posted a record surplus of $23.84 billion, to add to the $30 billion of surplus collected in the previous six years.
Finance Minister Bader Mishari Al-Humaidhi has said that Kuwait’s financial assets, which include returns on huge overseas investments, have reached $166 billion.
Kuwait sits on 10 percent of the world’s oil reserves and is pumping around 2.4 million barrels a day. It has a native population of one million people, in addition to two million foreign residents.
Meanwhile, Kuwait’s Energy Minister Ali Al-Jarrah Al-Sabah said yesterday oil prices were “very good” but declined to say if OPEC should change its output cap at its next meeting.
“Prices are very good,” Ali told reporters when asked if the Organization of the Petroleum Exporting Countries should change its output levels in the March 15 ministerial meeting.
