Mubasher: Kuwait’s oil revenues amounted to KWD 13.07 billion ($42.97 billion) in the first 10 months of fiscal year 2019/2020, down by 17.64% year-on-year (YoY) from KWD 15.87 billion ($52.17 billion)
Oil revenues in Kuwait accounted for 94.2% of the estimated income of KWD 13.863 billion for fiscal year 2019/2020, according to recent data by the Ministry of Finance.
The decline in oil revenues over the 10 months is due to the country’s commitment with the OPEC and its allies based on an agreement to trim oil output until the end of March 2020.
Moreover, unstable oil prices drove revenues down since the beginning of 2020, on slacking Chinese demand following the outbreak of the novel coronavirus (COVID-19) which shut down factories across the Asian country.
It is noteworthy that Kuwait is the world’s eighth-largest crude producer with the ninth-largest oil reserve globally, in addition to existing reserves sufficient for 100 years ahead.
It is worth noting that Kuwait’s budget deficit recorded KWD 2.26 billion ($7.43 billion) in the first 10 months of fiscal year 2019/2020 after transferring the Future Generations Fund’s reserve.