Despite A Decline In Average Oil Prices, Kuwait Makes 85 Percent Of Its Estimated Oil Revenues For The Entire Fiscal Year

Although the average price of Kuwaiti barrels continued to decline in September for the third consecutive month, oil prices were affected by fears of global slowing growth and recession entering global economies. According to the estimates of the state's general budget approved by the previous parliament's Budget Committee of $80 for 2022-2023 and the break-even price of $79 for the current fiscal year, which predicts large surpluses.

Kuwaiti barrels cost about 107.3 dollars on average last April, then 117.3 dollars in May and 117.4 dollars in June before falling to 109.3 dollars in July and 104 dollars in August before reaching 98.66 dollars in September. This means a decrease of about 8 percent in the average price of a barrel over the past month compared to April and 16 percent compared to the high average recorded during the current fiscal year last June.

According to the average price of $107.3 per barrel last April, oil revenues during the first month of the current fiscal year are expected to have reached $7.403 billion, or approximately 2.294 million dinars, assuming Kuwait exports 2.3 million barrels per day of its total production, which stands at 2.811 million barrels per day, which will drop to 2.676 million by November, following recent OPEC+ cuts.

Kuwait's average oil price increased to 117.3 dollars in May, resulting in an increase in oil revenues to 8.363 billion dollars, or 2.591 billion dinars.

Considering that June has 30 days and May has 31, oil revenues are expected to reach $8.1 billion during the third month of the fiscal year, equivalent to 2.51 billion dinars.

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.

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