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KUWAIT CITY, Oct 10: Despite the continued decline in the average price of the Kuwaiti barrel in September for the third month in a row, as a result of oil prices being affected by fears of slowing growth globally and the entry of global economies into recession, it remained higher than the estimated price in the state’s general budget 2022-2023 approved by the Budget Committee of the previous parliament of $80 and the break-even price of $79, which predicts large surpluses in the current fiscal year’s budget, reports Al-Rai daily.
The average price of the Kuwaiti barrel was about $107.3 last April, then rose to $117.3 in May, then $117.4 in June, before falling to $109.3 in July and $104 dollars in August, to reach $98.66 dollars in September, which means a decrease in the average price of a barrel during the past month by about 8 percent compared to April and by 16 percent compared to the highest average recorded during the current fiscal year last June.
With an average record of $107.3 per barrel last April, it is expected that oil revenues during the first month of the current fiscal year would have amounted to $7.403 billion, equivalent to approximately 2.294 million dinars, assuming the export of 2.3 million barrels per day of Kuwait’s total production, which currently stands at 2.811 million barrels per day will drop to 2.676 million next November, according to the recent OPEC + cuts.
In May, the average price of a Kuwaiti barrel increased to $117.3, which means an increase in oil revenues during the month to $8.363 dollars, or 2.591 billion dinars. In June, the average rose to $117.4 per barrel, which means that oil revenues are expected to reach $8.1 billion during the third month of the fiscal year, equivalent to 2.51 billion dinars (given that June has 30 days and May 31 days).
In July, with the average price of a barrel reaching 109.3 dollars, it is assumed that oil revenues will be recorded at 7.793 billion dollars, or about 2.41 billion dinars. In August, recorded oil revenues are estimated at $7.415 billion, equivalent to 2.3 billion dinars, with the average price of a barrel reaching about $104, while those revenues are expected to drop in September to 2.11 billion dinars with the price of a barrel reaching $98.66.
Thus, it is expected that Kuwait’s oil revenues in the first half of the current fiscal year will reach 14.215 billion dinars, or about 85 percent of the estimated budget for the full fiscal year, which amounts to 16.741 billion dinars.