Kuwait - Decypha: An average price of $52.5 for the oil barrel in 2017, up from $45.10 a barrel in 2016 will leave crude producers in the Middle East, Africa and Europe’s emerging markets unable to fix their budgets.
Kuwait, Qatar and the Republic of Congo’s budgets will not be hugely affected as their breakeven levels are near the barrel prices, Fitch Ratings announced in its report.
Placed in the best position, Kuwait is benefiting not only from low production costs but also the high output levels as well as its investment income.
Nigeria has a lot of job with regards to balancing its budget as it needed $139 per oil barrel, along with other 10 countries that requested higher prices despite their efforts to reduce public spending and adjusting their currencies’’ values.
Countries requests for the oil barrel came as $84 in Bahrain, $82 in Angola, $75 in Oman, $74 in Saudi Arabia and $72 in Russia.
In November, OPEC has agreed to cut oil production after Saudi Arabia and other oil producing Gulf countries approved the reductions.
The agreement is scheduled to last for six months from January, with expectations to be extended until the end of 2017.
The international oil prices have started to slump in 2014 after Saudi Arabia raised its output, causing a reduction in the value of US shale and other high-cost producers, which has later affected the economy of the Gulf kingdom, prompting it to introduce economic reforms.
By Decypha Editorial Team
