Opec income to increase by $184bn in 2010

An expected rise in oil prices will ally with higher crude supply to boost Opec's income by $184 billion (Dh675bn) in 2010 after tumbling by nearly a third in 2009, official US data showed yesterday.

The 12-nation Opec, which pumps just under 40 per cent of the global oil supplies, is projected to net about $575bn in 2009, far lower than its record 2008 income of $965bn, said the Energy Information Administration (EIA).

Earnings are expected to sharply rebound to $759 bn in 2010 apparently because of higher prices and output.

EIA of the US Department of Energy gave no forecasts on prices and Opec's production but according to the Institute of International Finance, crude prices could average about $72 a barrel in 2010 compared with $60 in 2009.

Opec producers could also be prompted by an expected recovery in demand to hike output, which was officially cut by 4.2 million bpd at the start of 2009 following a sharp fall in demand because of the global fiscal turbulence.

EIA had previously projected Opec's 2010 income at below $600bn but it massively revised up its forecasts apparently because it expects crude prices to rebound next year and the Group's production to be raised.

Opec, which controls more than 70 per cent of the global oil resources, netted its highest ever income in 2008 after prices soared to a record high of nearly $147 a barrel in late July and averaged $95 through the year.

EIA's figures showed Opec's oil export earnings stood at about $512bn in the first 11 months of this year, when crude prices averaged about $60.

A breakdown showed Saudi Arabia, sitting atop a quarter of the world's oil wealth, gained nearly $139bn, more than a quarter of Opec's total income.

Iran was the second largest earner with $49bn, followed by the UAE with $46bn and Kuwait with about $41bn.

The 11-month income was estimated at $41bn in Nigeria and $38bn each in Algeria and Angola.

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