Kuwait's 2001-2002 state budget will post a "slight deficit" of around 39 million dinars ($126.95 million) if the price of Kuwaiti oil drops to $21 a barrel, the National Bank of Kuwait said Saturday.
The bank said in the report, cited by the Gulf Daily News, that $21 per barrel would be its "weakest scenario for prices," which now are around $23 a barrel.
The "more likely scenarios" of $22.5 and $25 a barrel would result in budget surpluses of 232 million dinars ($755.2 million), and 817 million dinars ($2.65 million) respectively, according to the bank.
Oil is the mainstay of the economy of the state.
Many of the Gulf states, hit by budget shortfalls and worried about a future point when oil reserves run dry, have begun trying to diversify their economies – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
