Kuwait may post fiscal year budget surplus

Kuwait may post a budget surplus in fiscal 2003-2004 if oil prices maintain their current strength and Iraqi oil exports remain relatively low.

    Kuwait set to benefit from delayed Iraqi oil exports

    Even though Iraq has signed some oil export contracts, the tenuous security situation, aged infrastructure and sabotage mean pipelines are not operating at anywhere near capacity, the National Bank of Kuwait said in a report.

    "Continued deterioration in the security situation in Iraq has not allowed the oil sector to return to capacity production levels as early as had been hoped," it said.
      
    "The market has become quite pessimistic and does not expect any return to normality during this year.

    As a result, the crude oil market has been undersupplied and is expected to remain so at least throughout the remaining part of 2003," the report added.

    Revenue boost

    Kuwaiti crude will likely sell for between $23.7 and $27.9 a barrel for the remainder of the fiscal year, generating revenues of between 59% and 89% more than  the expected draft budget.

    The budget is expected to be 3.555 billion dinars ($11.85 billion). Kuwait had forecast a deficit of $7.56 billion.
     
    The NBK said it expects expenditure "about 10% below budget ... which means the budget is likely to see a surplus ranging between 304 million and 1.35 billion dinars."

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.

    The priceless racism of the Duke of Edinburgh

    The priceless racism of the Duke of Edinburgh

    Prince Philip has done the world an extraordinary service by exposing the racist hypocrisy of "Western civilisation".

    China will determine the future of Venezuela

    China will determine the future of Venezuela

    There are a number of reasons why Beijing continues to back Maduro's government despite suffering financial losses.