Kuwait’s annual oil and gas financing faces 34.7% drop

Personal & industrial sectors see growth in credit facilities

This news has been read 1152 times!

KUWAIT CITY, Dec 6: In October, local bank financing for the oil and gas sector witnessed an extraordinary surge, increasing by an astounding 1917% to reach the level of 125.1 million dinars. This marked a significant leap from the 6.2 million dinars reported in September. However, when viewed on an annual basis, this surge was tempered by a 34.7% decline, equivalent to 66.5 million dinars, in comparison to the figures from October 2022. Insights from the monthly statistics released by the Central Bank of Kuwait underscored that the cumulative credit facilities for the oil and gas sector amounted to approximately 1.5 billion dinars over the first ten months of 2023.

The financing landscape for the oil and gas sector in 2023 exhibited a certain degree of volatility. It saw a decrease from 152.6 million dinars in December to 78.8 million dinars in January. Subsequently, it rose sharply in February, reaching 243.3 million dinars, only to decline again by 61.2 million dinars in March. This pattern continued, with an upswing to 159.2 million in April, followed by a spike to 274.3 million in May. The trend reversed in June, dropping to 169.1 million dinars, only to decline further to 84.9 million dinars in July. Notably, there was another significant surge in August, reaching 298.7 million dinars, before the sudden dip to 6.2 million dinars in September, and the subsequent rise to 125.1 million dinars in October.

Credit facilities
As for the balances of credit facilities, they experienced a substantial increase of 297 million dinars, reaching the level of 53.125 billion dinars in October compared to 52.828 billion in September. On an annual basis, these facilities increased by one billion dinars, up from 52.126 billion dinars in October 2022. The specifics of the credit landscape include a noteworthy rise of 119 million dinars in personal credit facilities, reaching 18.771 billion dinars in October, compared to 18.652 billion dinars in September. Credit facilities directed to the industrial sector also registered an increase of 11 million dinars, reaching 2.754 billion dinars in October, as opposed to 2.743 billion dinars in the preceding month. In contrast, the value of facilities in the trade sector experienced a decline from 3.603 billion dinars in September to 3.566 billion dinars in October.

Moreover, the value of consumer facilities and loans observed an uptick during October, rising by 14 million dinars and reaching 1.968 billion dinars, compared to approximately 1.954 billion dinars in September. However, government deposits underwent a decline of 181 million dinars in October, settling at 4.050 billion dinars by month-end, in contrast to 4.231 billion dinars in September. Over ten months, government deposits exhibited an overall increase of about 675 million dinars from the end of December 2022.

In the context of global oil markets, prices experienced a noteworthy upturn following statements by the Saudi Energy Minister, suggesting the potential continuation of OPEC+ production cuts beyond March. Against a backdrop of uncertainty surrounding these voluntary production cuts, ongoing geopolitical tensions in the Middle East, and lackluster economic data from the United States, Brent crude futures rose by 63 cents to $78.66 per barrel. Simultaneously, US West Texas Intermediate crude futures also increased by 63 cents, reaching $73.67 per barrel. Kelvin Wong, Chief Market Analyst for the Asia-Pacific region at OANDA, emphasized that the Saudi Energy Minister’s comments lent some support to the market, offering a degree of reassurance amid prevailing uncertainties.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff

This news has been read 1152 times!

Related Articles

Back to top button

Advt Blocker Detected

Kindly disable the Ad blocker

Verified by MonsterInsights