UAE set for oil windfall for second year

Despite signs of a slowing global economy, international oil prices continue to hold well above $100 (Dh367) a barrel, enabling the UAE to look at windfall gains from crude exports for a second year in a row, said a well-known petroleum expert. "Infrastructure spending patterns in the UAE will be positive on higher state spending as the government continues to achieve higher profits from oil sales," Dalton Garis, Associate Professor of Economics and Petroleum Market Behaviour at Abu Dhabi's Petroleum Institute, told Gulf News. "Higher oil export revenues also mean the government will have a greater cushion to meet other state expenses," he added. On the New York Mercantile Exchange, crude for October delivery on Wednesday was trading close to $88 a barrel, while in London, ICE Brent crude for October delivery was about $114 a barrel. The 12-member Organisation of Petroleum Exporting Countries' (Opec) oil output continued its upward climb in July, increasing by 430,000 barrels per day (bpd) from June to 30 million bpd, its highest level since December 2008, according to the latest Platts survey. Averaged The official selling price of crude oil grades produced by the Abu Dhabi National Oil Company (Adnoc) averaged $106.62 per barrel during the first six months of 2011, up 37.95 per cent over the corresponding period a year earlier, as an accelerated global economic recovery boosted oil prices on increased demand, latest data from Adnoc, extrapolated by Gulf News showed. The Adnoc group of companies together produce more than 90 per cent of the UAE's oil output, which is currently about 2.5 million barrels per day. Between January and June 2010, the average official selling price of Abu Dhabi's crude oil grades was $77.95 per barrel. In June, the average official selling price of Adnoc crude oil grades jumped to $110.9 a barrel from $74.11 a barrel during the same month a year earlier. In June, the official selling price of Adnoc's Murban crude was $112.15, while the Lower Zakum crude sold at $111.95 a barrel. Umm Shaif grade's selling price was $111.55 a barrel, while Upper Zakum's price was $107.95 a barrel.