OPEC Revenue Lowest For 11 Years; Markets Indicate Further Slide In 2016

Current futures prices indicate that Opec countries’ oil revenues, having halved in 2015, are set to fall by a further 30%-plus this year. Prices have fallen by a further $15/B fall since the start of the year. Current Brent futures (of around $36/B for 2016) imply a 2016 average of around $34/B for the somewhat heavier Opec Basket.

This in turn implies collective 2016 Opec oil export revenue of just $356bn, down from a MEES estimate of $496bn for 2015 (itself the first sub-$500bn figure since 2004: see MEES, 11 December 2015) and barely a quarter of 2012’s record $1.2 trillion figure (see table).

This has now created a Catch-22 situation whereby Opec producers’ collapse in oil export revenue means they urgently need to slash spending. (CONTINUED - 421 WORDS)

DATA INSIDE THIS ARTICLE

table OPEC 2016 Oil Export Revenue Would Be 70% Down On 2014 Based On Current Futures Prices ($Bn)