The price of Bahraini oil declined to $54 per barrel during the first eight months of 2015, compared with $105 per barrel in the same period of 2014, a drop of 48 per cent.
The oil price average during the first eight months is estimated at $54 per barrel, roughly $6 less per barrel from the estimated price in the general budget ($60 per barrel), which means there is a shortage in the country’s estimated revenue, Bahrain based Al-Wasat newspaper reports.
The monthly average price of Bahraini oil in the world market ranged between $44 to $62 per barrel. In January, it stood at $44 per barrel, while it was $54 per barrel in February, $52 per barrel in March, $57 per barrel in April, $62 per barrel in May, $61 per barrel in June, $54 per barrel in July and $46 per barrel in August.
Bahrain’s production of crude oil amounted to roughly 202,000 barrels daily, as follows: 150,000 barrels daily from the Abu Safah oil field shared with Saudi Arabia and close to 52,000 barrels daily from Bahrain Wild field.
Bahrain’s dependence on oil revenue is heavy, with an estimated 85 per cent of oil revenues building their budget. In the 2015 budget, it was estimated oil prices would be at $60 per barrel, but the price in the global market was less than the estimated price.
Bahrain needs oil to sell at $120 per barrel to strike a balance between incomes and expenditures in the general budget.
($1 = AED 3.67 at publishing time)