OPEC revenues plunge 11%, fall below $1 trillion in 2014

Revenues earned from oil exports by members of the Organisation of the Petroleum Exporting Countries fell 11 per cent last year, the cartel said in its annual report.

OPEC’s revenues fell from $1.112 trillion in 2013 to reach $993.3bn in 2014, falling below the $1 trillion mark for the first time since 2010.

In addition, the current account balance of its 12 member states tumbled from $417.7bn in 2013 to $273.6bn last year, down by 35 per cent.

The report also stated that they were forced to import more oil last year even as they exported less.

OPEC’s performance has been hurt by crude prices, which are down nearly 60 per cent since the second half of 2014.

The lower oil prices have sustained, partly because the cartel has refused to cut back its output.

In a recent meeting, all OPEC members agreed amicably to continue this policy and bear long-term pain in order to price out cheap US shale production.

The cartel argued that the oil market will not stabilise unless all players- including the US and Russia- too cut production along with it.

Despite the strain low crude prices are exerting on their coffers, most OPEC members are expecting prices to rebound in the later half of 2015.

Brent crude did rise more than a dollar to reach $65 per barrel on Wednesday owing to strong demand and a drop in US production.

But analysts have warned that prices might not rise immediately as the market is still suffering from a supply glut.

Most Gulf countries, apart from Bahrain and Oman, have said that they will not curtail spending, promising to draw upon their buffers earned from years of high crude prices.

However, some state ventures with interests in oil and gas projects have been affected.

Abu Dhabi state fund Mubadala’s 2014 profits fell 28.7 per cent due to lower income on oil and gas assets.

Meanwhile Saudi Aramco has also reportedly put on hold a number of projects due to lower oil revenues.