Kuwait Petroleum Corporation (KPC) has announced the setting of the indicative price for Kuwaiti oil at $70 per barrel for the fiscal year 2024/2025, commencing this April.
This key financial indicator was reported by Al-Anba daily, which cited informed sources.
It should be noted that while KPC proposes this price, the final determination is subject to the comprehensive evaluation and adjustments of the Ministry of Finance during the formulation of the final State budget draft.
This pricing decision marks a notable trend, as it retains the $70 per barrel price point for the second consecutive year. The previous fiscal year, 2023/2024, also saw the same price level, even though the oil production volume was slightly higher at 2.676 million barrels per day. This contrasts with the 2022/2023 budget, where the indicative price was set at $80 per barrel, with an estimated production volume of 2.73 million barrels per day.
Further insights reveal that, according to the Ministry of Oil, Kuwait’s oil production from January to the end of March 2024 is projected to be around 2.413 million barrels per day. This production level aligns with the decisions made by OPEC+, which include a voluntary additional reduction of 135,000 barrels per day during this period.
The consistency in the indicative oil price, despite varying production volumes and market conditions, reflects KPC’s strategic approach to budgeting and financial planning. It also highlights the influence of global oil alliances like OPEC+ on national production decisions. The Kuwaiti government’s final stance on this estimate will be critical in shaping the financial landscape for the upcoming fiscal year.
