ABU DHABI — Kuwait, bolstered by high oil prices, plans to post a
record budget surplus.
The Kuwaiti Finance Ministry said total revenues in the first 11 months
of the Kuwaiti year reached $27.1 billion. Kuwait had planned for an $11.25
billion for the entire year, Middle East Newsline reported. The Kuwaiti year runs from April 1 to March 31.
Meanwhile, Gulf officials said the demand for oil would continue over the next few
years amid accelerated development by China and India. They said the price
of oil would probably hover around the $50 market for most of 2005.
"Prices will never [again] go under the $40 per barrel mark," Kuwait
Petroleum Corp chief executive officer Hani Hussain told the Abu Dhabi-based
Gulf News said. "We know there is huge demand for crude oil. This has pushed
prices higher than most of us anticipated."
Officials said OPEC could meet increased oil demand over the next few
years. They cited increased output capability by such countries as Iran and
Saudi Arabia and similar plans by Kuwait and the United Arab Emirates.
The Kuwait ministry said oil revenues reached $25 billion, an increase of 31
percent on the corresponding period in 2003-4 of $19 billion. The
revenues were nearly triple the budget projection for the whole current year
of $9.27 billion.
Officials said March 2005 would mark the largest oil revenues, based on
oil prices of nearly $60 a barrel. In February, oil revenues reached $2.6
billion, a 44 percent from the previous month.
Gulf oil-producing states are doubtful that the price of
crude oil will drop significantly.
