In January 2024, Kuwait's Oil Barrel Average Price Stood At Around $80.9

In a recent update by Al-Shall, January 2024 marked the conclusion of the tenth month of the fiscal year 2023-2024, revealing intriguing insights into Kuwait's oil market. The average barrel of oil was priced at $84.7 during this period, with specific attention to Kuwaiti oil, which surpassed the budgeted estimate by $10.9 or 15.6%, standing at $80.9.

The comparison with the previous fiscal year, 2022-2023, highlights a 16.7% decrease in the average price of Kuwaiti oil for January 2024, reaching $80.9. This figure is also 12.9% lower than the break-even price of $92.9, factoring in the Ministry of Finance's adjustments after discontinuing the 10% deduction for the Future Generations Reserve.

With January's oil revenues estimated at 1.575 billion dinars and projections aligned with recent OPEC+ decisions, the potential total oil revenues for the fiscal year are anticipated to be approximately 20.793 billion dinars after deducting costs.

Surprisingly, this figure is notably higher, by 3.624 billion dinars, than the projected budget of 17.169 billion dinars for the current fiscal year. When factoring in an additional 2.298 billion dinars from non-oil revenues, the total budget revenues are expected to reach around 23.091 billion dinars.

However, with expenditure allocations totaling about 26.279 billion dinars, there's a likelihood of a deficit amounting to 3.187 billion dinars for the general budget of the fiscal year 2023-2024. The size of the deficit or surplus hinges on oil revenues, while potential adjustments in public expenditures could contribute to deficit reduction or surplus increase.

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