Mubasher: Kuwait is expected to have achieved oil revenues worth KWD 1.5 billion in May, assuming that oil production and prices would remain at the current levels.
As reported by Al Shall Consulting, Kuwait's oil revenues would score about KWD 16.8 billion in oil revenues for the entire current fiscal year, which is KWD 3.5 billion higher than the value of oil revenues estimated for the budget at KWD 13.3 billion.
By adding an amount of KWD 1.7 billion in non-oil revenues, total budget revenues in Kuwait would score KWD 18.5 billion for the current fiscal year.
“Comparing this figure with expenditures allocations in the amount of KWD 21.5 billion, it is likely that the general budget for FY 2018/2019 would achieve a deficit in the amount of KWD 3 billion. However, the actual deficit remains a variable with the movement of oil prices and production during the remainder of the fiscal year,” Al Shall said.
The average price of Kuwait’s crude oil for most of May scored $ 72.7 per barrel (pb) by the end of May 2018, the second month of the current fiscal year 2018/2019, according to a recent report by Al Shall Consulting.
This price level is $22.7 or 45.4% higher than the new hypothetical price in the current budget at $50 (pb). It is also $27.7 higher than the hypothetical price for the prior fiscal year which registered $45 pb.
