Kuwait - Crude oil exports of the Organisation of Arab Petroleum Exporting Countries (OAPEC) amounted to US$ 50.04 billion in the first quarter of 2016, down $24.5 billion over the same period of 2015.
The OAPEC member states are locked in several economic challenges due to dwindling oil prices that have led to a drop in oil earnings, thus negatively affecting their public budgets, the pan-Arab organisation said in its monthly bulletin.
The fall in international oil prices have resulted in the cancellation or postponement of capital projects in some member states which rely heavily on oil revenue as a main source of income and revenue, it said. The negative impacts of uncontrollably falling oil prices have reached non-oil sectors and, consequently, consumer spending and investment levels, it noted.
However, member states’ governments have resorted to a package of economic measures in order to redress budget deficits, including withdrawal of foreign exchange reserves, reduction of public spending, especially capital expenditure, while keeping current spending like salaries intact, the OAPEC bulletin added.