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Gulf states to earn record $562b in revenue

DUBAI - Gulf oil producers are expected to earn a record $562 billion in 2008 as crude prices are projected to remain above $100 and they are pumping at one of their highest levels, according to new data from the London-based Centre for Global Energy Studies (CGES).

Accordingly, the combined oil export earnings of the six Gulf Cooperation Council (GCC) countries will soar to their highest level of $562 billion this year.

The UAE's income will swell to an all-time high of $97 billion while that of Saudi Arabia will surge to $307 billion and that of Qatar and Kuwait will peak at $89 billion and $32 billion respectively.

The income, it added, is nearly $234 billion above their 2007 revenues of $328 billion and more than four times their earnings of $137 billion in 2003. In 1998, the GCC's combined revenues plummeted to one of their lowest levels of around $56 billion after oil prices collapsed below $10 a barrel and averaged $12 through the year.

Leo Drollas, deputy manager of CGES said the revenue forecasts for the Gulf states and other Opec members are based on an average Opec basket price of around $110.8 this year compared with nearly $69 in 2007.

A breakdown showed Saudi Arabia's earnings this year would be nearly 75 per cent higher than in 2007 while those of the UAE would surge by 67 per cent. Kuwait's income would leap by around 71 per cent and Qatar by 68 per cent. The revenues of Oman and Bahrain would be higher by 70 and 33 per cent. Drollas figures showed Opec's total income would jump by around 53 per cent to a record $1.014 trillion this year from $598 billion in 2007.

He said the forecast was based on a $110.8 oil price and average crude production by the 13-nation organisation of around 32.6 million barrels per day compared with nearly 30.7 million bpd in 2007.

Saudi Arabia's output is projected at around 9.5 million bpd in 2008 while that of Kuwait and Qatar is forecast at nearly 2.6 million and 815,000 bpd respectively. Non-Opec Oman pumped an average 740,000 bpd in the first five months of 2008 and it expects output to rise above 750,000 bpd through the year. Bahrain has maintained output at 160,000 bpd.