TEHRAN: Based on United States (U.S.) Energy Information Administration (EIA) price forecasts, revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC), is expected to fall to $341 billion in 2016. The agency, which believed that the revenue could still increase to $427 billion in 2017, put the cartels earnings in 2015 at $404 billion in net oil export revenue in 2015, representing a 46 per cent decline from $753 billion earned in 2014.
EIA said in a statement at the weekend, that although these net export earnings include Iran’s revenues, the net export revenue is not adjusted for possible price discounts that Iran may have offered its customers between late 2011 and January 2016, when nuclear-related sanctions targeting Iran’s oil sales were in place. It disclosed that OPEC members’ net oil export revenue has fallen as crude oil prices have declined. EIA explained that the monthly average Brent spot price dropped from $112 per barrel in June 2014 to $38 per barrel in December 2015.
The agency disclosed that OPEC members’ 2015 net oil export revenue was at the lowest level since 2004, with significant implications for the fiscal condition of member countries that rely heavily on oil sales to fund social programs and to import other goods and services. In inflation-adjusted terms, OPEC net oil export revenue totaled $606 per person in 2015, down 83 per cent from the 1980 level of $3,500 per person.
It explained: “The effects of recent declines in net oil export revenue on the economies of each OPEC member state depend on the importance of oil export revenues and the existence of other financial assets. Petroleum exports by OPEC members accounted for between five (Indonesia) to 99 per cent (Iraq) of total export revenues in 2015. Generally, countries with sizeable financial assets, such as the Persian Gulf States (Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates), are affected to a lesser degree than other oil-producing countries, such as Iraq, Nigeria, and Venezuela that do not have large financial reserves.
