UAE oil revenues touched record $21.8 billion in 2003

ABU DHABI - Firm oil prices in 2003, averaging at around $27.4 per barrel, the highest annual average for a long time, resulted in oil revenues of the AGCC countries rising by 17 per cent last year compared to 2002, from $120 billion to $140 billion in 2003.

By (WAM)

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Published: Tue 10 Feb 2004, 12:14 PM

Last updated: Thu 2 Apr 2015, 11:50 AM

The oil revenues of the UAE is estimated to have reached $21.8 billion, an all-time high, according to a report by the Emirates Industrial Bank Journal.

The EIB report on "Developments in the Oil Market," stated: "The oil exporting countries of the AGCC have benefited from the high prices as they have been able to maintain high production levels and reach their quota ceilings unlike some other members like Venezuela, Nigeria and Indonesia which have not been able to use their quotas." It pointed out that besides increasing demand, there have also been supply side concerns which have kept the prices at these high levels.

As a consequence of the war, Iraq is currently producing only 0.7mbd, a fraction of its capacity, whereas Venezuela and Nigeria have been constrained by political difficulties, the study said.

With regard to Opec producers, the report said that current quota is

24.5 million barrels per day. "Despite the high price levels, Opec did cut production quotas by a total of 0.9mbd in November 2003. In the near future it would perhaps be difficult to get members to agree to cuts in production quotas at a time when prices are at their highest in a decade. At the same time, Opec members not fully utilising their production quotas are more likely to be more receptive to the idea of production cuts.

Venezuela and Indonesia are currently not able to reach their ceilings, and Algeria is likely to face the same because of production problems this month.

"Oil prices in the medium term (1993-2003) have remained fairly stable, the report said. Though on occasion, prices may have fluctuated too far to the dissatisfaction of either the buyers or the sellers, for most of this period oil price has remained within the Opec acceptable target price-range of $22-28."

The '90s and beyond can be deemed as a period of stability compared to the'80s and '70s which were rocked by volatility in the oil markets, raising concerns either for the health of the global economy or that of the oil exporting nations.

"Two clear phases can be observed in the past decade. First was a very calm and stable period between 1993 and 1997 when prices remained in a very narrow band of $15 to $20 per barrel."

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