Falling oil prices may lead to budget deficit this year

Global Business

Kuwait is asking the International Monetary Fund to help diversify its revenue due to falling oil sales and part of their plan calls for imposing corporate taxes. While the oil rich gulf state has compensated for slumping oil prices, its budget and future production are still at risk. Natalie Carney reports.

Falling oil prices may lead to budget deficit this year

Falling oil prices may lead to budget deficit this year

Kuwait is asking the International Monetary Fund to help diversify its revenue due to falling oil sales and part of their plan calls for imposing corporate taxes. While the oil rich gulf state has compensated for slumping oil prices, its budget and future production are still at risk. Natalie Carney reports.

Reference Price for the OPEC Crude Oil Basket. This includes Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). Data: quandl.com

Highlights:

  • Kuwait produces nearly 3 million barrels of oil a day.
  • The price of Kuwaiti crude has plummeted from around $103 a barrel last year to about $50 a barrel currently.