OPEC posts first deficit since 1998, revenues fall to 10-year low

OPEC has posted its first current account deficit since 1998, with revenues falling nearly 46 percent to a ten-year low amidst the prolonged oil slump, the group said in its latest report.

The cartel announced a current account deficit of $99.6 billion in 2015, compared to a surplus of $238.1 billion in 2014.

Petroleum export revenues fell to $518.2 billion in 2015, a 45.8 percent decline from the previous year, marking the lowest level seen since 2005, the report said.

In 2015, world crude oil production increased by 1.75 million barrels per day (bpd), rising 2.4 percent from 2014 levels, marking the second-highest increase within the last 10 years.

OPEC crude production averaged 32.32 million bpd last year, increasing by 3 percent from 2014 – the first surge in production after two years of decline. Among non-OPEC countries, the US saw the biggest yearly increase, growing by 8.3 percent, OPEC said.

Saudi Arabia, Russia, and the US were the top three crude oil producing countries last year, with the kingdom displacing Russia in the top position for the first time since 2005.

In 2015, world oil demand averaged 93.0 million bpd, up by 1.7 per cent YoY, with the largest increases taking place in the Asia Pacific region, particularly India and China, North America, Western Europe, the Middle East, and Africa.

OPEC’s total crude oil exports stood at 23.6 million bpd last year, the bulk of which (61.5 percent) was exported to the Asia Pacific region.

Reflecting the sharp decline in oil prices over the past two years, the OPEC Reference Basket averaged $49.49 per barrel in 2015, down from $96.29 per barrel in 2014, plunging to the lowest yearly average observed since 2004.

Write to Jerusha Sequeira at jerusha.s@argaamnews.com