Kuwait to reap surplus of 22 bln dollars for 2005-2006

Kuwait could reap a surplus of between 6.6 billion Kuwaiti dinars (22.44 billion US dollars) and 7.6 billion dinars (25.84 billion dollars) for the fiscal year 2005-2006, the National Bank of Kuwait (NBK) said in a report on Sunday.

So long as the demand on oil remains at its current rate and crude oil prices peg on the range between 51.2 dollars per barrel (dpb) and 54 dpb, Kuwait could see a surplus revenue of at least 6. 6 billion dinars before the allocation of 10 percent to the Reserve Fund for Future Generations.

The report said the release of emergency stocks from the US Strategic Petroleum Reserves and the International Energy Agency ( IEA) helped bring prices down by providing psychological comfort.

"The reality remains that crude oil supplies are less important at present than available production, refining capacity and demand in determining the near-term movement in prices," it said.

It added that as a result, government revenues are expected to be between 13.6 billion dinars (46.24 billion dollars) and 14.4 billion dinars (48.96 billion dollars), assuming that actual expenditures cover between 94 percent and 97 percent of the budget.

Source: Xinhua