Kuwait crude oil price slipped below the $30 barrier for the first time since December 2004, sending the country’s oil returns down by 70 per cent, according to an analysis by Al-Rai newspaper.
On December 15, Kuwaiti crude shed $1.49 of its value to reach $29.8 a barrel with no indications of a foreseeable recovery of prices.
Oil affairs expert Muhammad al-Shatti noted that Kuwait crude oil slumped from $46.5 a barrel in October to $29 two days ago. The pundit believes that weak prices might run over the next two years.
He indicated that the gross output of OPEC members stands at 31.1 million barrels a day while demand is now at 29.6m barrels, meaning there is an excess supply of 1.5 million barrels a day.
Iraq, another major OPEC producer, increased its output from 3.4m barrels in January this year to 4.4m barrels in November, Al-Shatti notes, adding that Saudi Arabia has also increased its production from 9.56m barrels a day to 10.1m barrels in November.
($1 = AED3.67, at the time of publishing)