OPEC Files $99.6b in First Collective Deficit since 1998

OPEC Files $99.6b in First Collective Deficit since 1998

As a result to the oil-price slump that dropped government petroleum-export revenue to a 10-year low, OPEC members have registered their first collective budget deficit since 1998, The Wall Street Journal reported, citing the cartel’s Annual Statistical Bulletin.

OPEC members’ total cumulative budget deficit amounted to $99.6b in 2015 compared with a surplus of $238b in 2014.

OPEC’s oil revenues were down by nearly 50% already in 2015, falling 45.8% from 2014 to $518.2b, the lowest since 2005. The cartel’s exports slid in value by 29.1% year-on-year, while total imports declined by 8.7%, informed RT.

In wake of worsening conditions in several OPEC member countries, Venezuela is reported to rank worst, after having posted a 4.8% decline in oil production for May, a drop to 2.37mb/d, and whose economy appears to be on the brink of total collapse, Ship and Bunker informed.

OPEC governments’ response to the oil-price crash has compounded their budget problems. Since 2011, several OPEC members have boosted spending on state jobs and infrastructure following  the Arab Spring.

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