OPEC Revenues Dive 11%, Falling Below $1-T In Y 2014

OPEC Revenues Dive 11%, Falling Below $1-T In Y 2014

$OIL

The Crude Oil cartel’s revenues fell from $1.112-T in Y 2013 to $993.3-B in Y 2014, a new report shows

Revenues earned from Crude Oil exports by members of the Organisation of the Petroleum Exporting Countries (OPEC) fell 11% last year, the cartel said in its annual report.

OPEC’s revenues fell below the $1-T mark for the 1st time since Y 2010.

In addition, the current account balance of its 12 member states tumbled from $417.7-B in Y 2013 to $273.6-B last year, down by 35%.

The report also stated that they were forced to import more Crude Oil last year even as they exported less.

OPEC’s performance has been hurt by Crude prices, which are down nearly 60% since 2-H of Y 2014.

The lower Crude Oil prices have sustained, partly because the cartel has refused to cut back its output.

In a recent meeting, all OPEC members agreed to continue this policy and bear long-term pain in order to price out cheap US shale Oil production.

The cartel argued that the market will not stabilize unless all players, including the US and Russia too cut production along with it.

Despite the strain low prices are exerting on their coffers, most OPEC members are expecting prices to rebound in 2-H of Y 2015.

Analysts warn that prices might not rise immediately as the market is still suffering from a supply glut.

Most Gulf countries, apart from Bahrain and Oman, said that they will not curtail spending, promising to draw upon their buffers earned from years of high Crude Oil prices.

However, some state ventures with interests in Oil & Gas projects have been affected.

Abu Dhabi state fund Mubadala’s 2014 profits fell 28.7% due to lower income on Crude Oil and Nat Gas assets.

Meanwhile, Saudi Aramco has also reportedly put on hold a number of projects due to lower Crude Oil revenues

By Mary Sophia

Paul Ebeling, Editor

HeffX-LTN

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