Tuesday, January 1, 2013

Finance: OPEC to reap $1 trillion in revenue; Egyptian pound falls again

The OPEC oil cartel, led by Soddy Barbaria, will pocket a record of more than US $1 trillion in net oil revenues in 2012 as the annual average price for Brent, the benchmark, heads to an all-time high in spite of weak economic growth
Brent oil prices for 2012 averaged about $111.5 a barrel, higher than the previous all-time high set in 2011 of $110.9. Adjusted for inflation, OPEC’s revenues in 2012 were also the highest ever, surpassing the peaks set during the oil crises of 1973-74 and 1979-81
The International Monetary Fund estimates that Soddy Barbaria and the UAE both need oil prices at about $80 a barrel to balance their budgets. Only a decade ago they were able to balance their budgets with oil prices averaging $25

Egypt's currency reached new lows on Sunday as policy makers tried to reassure the public and investors that they can prevent a full-scale currency devaluation while still fixing Egypt's budget deficit
President Morsi addressed the country's upper house of parliament on Saturday, blaming the continuing instability on his opponents and saying that foreign-exchange revenue from tourism and the Suez Canal had risen. "Egypt is not going bankrupt," he told the mostly pislamist assembly. 'Those who speak of bankruptcy are the ones who are bankrupt'
News reports here and here.