BAKU, Azerbaijan, Jan.15
By Leman Zeynalova – Trend:
Members of the Organization of the Petroleum Exporting Countries (OPEC) earned about $595 billion in net oil export revenues (unadjusted for inflation) in 2019, Trend reports citing the U.S. Energy Information Administration (EIA).
EIA estimates that in 2019, OPEC net export revenues decreased by 17 percent compared with the estimated 2018 net export revenues and were less than half the estimated record high of the more than $1.2 trillion earned in 2012. The estimated 2019 revenues fell because of lower crude oil prices and lower crude oil production levels, which were the result of an increase in crude oil production disruptions and voluntary curtailments of crude oil output among OPEC members.
Saudi Arabia accounted for the largest share of total OPEC earnings in 2019. EIA estimates earnings of $202 billion for Saudi Arabia, representing more than one-third of total OPEC oil revenues.
EIA forecasts that OPEC net oil export revenues will decline to about $323 billion (unadjusted for inflation) in 2020, the lowest level in 18 years. This decline is based on forecasts of lower global demand for petroleum products because of the general economic slowdown associated with the coronavirus disease (COVID-19) that has reduced demand for petroleum products and OPEC oil.
On a per capita basis, OPEC net oil export earnings declined by 19 percent in 2019 to $1,201, down from $1,476 in 2018 (unadjusted for inflation). EIA forecasts that 2020 per capita net oil export revenues will fall to $638. The decrease in revenues could be detrimental to member countries’ fiscal budgets, which rely heavily on oil sales to import goods, fund social programs, and support public services. The decline in expected net oil export revenue in 2020 is driven by continued voluntary curtailments and low crude oil prices.
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