Kuwait posts budget surplus as oil falls

Kuwait: Opec-member Kuwait posted a budget surplus of 8.09 billion dinars (Dh107.7 billion) in the first seven months of its 2008 to 2009 fiscal year despite tumbling oil prices, official data showed on Thursday.

Revenues in the world's seventh-largest oil exporter stood at 16.47 billion dinars in the seven months to October 31, while expenditure was 6.73 billion dinars, government data showed.

In calculating the budget, Kuwait has assumed its crude would fetch $50 a barrel over the year to March 31.

But Kuwaiti crude plunge to $38.63 on Wednesday, according to state news agency Kuna, after peaking at $135 in July amid a gloomy global economic outlook.

Based on the initial budget forecast, total revenue is expected to amount to 12.68 billion dinars for the whole year including 11.65 billion dinars from oil exports, the country's main revenue earner, the data showed.

Despite lower oil prices, Kuwait is expected to post a surplus on the back of a record oil prices during the first months of the fiscal year and slower than forecasted spending, National Bank of Kuwait (NBK) said in a research note.

Kuwait posted a surplus of 9.32 billion dinars in between 2007 and 2008.