KUWAIT CITY, Feb 28: Throughout the year 2023, Kuwaiti banks provided total financing of approximately 1.81 billion dinars to the oil and gas sector. However, there was a notable decline in funding for the sector in December, plummeting by 68.6% to 84.5 million dinars compared to the 269.7 million dinars recorded in November. On an annual basis, this represented a significant decrease of 44.6%, amounting to 68.1 million dinars in December 2023. The financing landscape for the sector displayed a fluctuating pattern throughout 2023. Starting at 78.8 million dinars in January, it increased to 243.3 million dinars in February, sharply declining to 61.2 million dinars, followed by an upswing to 159.2 million dinars in April.

The trend continued with a substantial rise to 274.3 million dinars in May, a dip to 169.1 million dinars in June, a further drop to 84.9 million dinars in July, and a significant surge to 298.7 million dinars in August. Subsequently, there was a decline to 6.2 million dinars in September, a subsequent increase to 125.1 million dinars in October, and a peak at 269.7 million dinars in November. In the broader context of credit facilities, the total cash credit facilities provided by banks, encompassing all sectors, witnessed a 2.1% increase during 2023, reaching 53.581 billion dinars by the end of December.

Personal cash facilities provided by banks experienced a growth of 1.5%, amounting to 284.2 million dinars, while housing facilities increased by 1.7%, reaching 276.4 million dinars. However, private and typical housing loans decreased by 7%, totaling 22.9 million dinars. The new credit facilities provided, consolidated for 12 months, saw a decline of about 618 million dinars or 2.75% during 2023, dropping from 23.049 billion dinars in 2022 to 22.431 billion in 2023. Personal facilities provided by banks decreased significantly by 43.1%, totaling 1,562 billion dinars, falling from 5.184 billion dinars in 2022 to 3.621 billion dinars in 2023. Consumer loans declined by 7.3%, amounting to 67.2 million dinars, and housing loans decreased by 59.2%, totaling 1.12 billion dinars.

Meanwhile, on the global front, oil prices experienced an upswing, nearing their highest levels in three weeks. Brent crude futures rose to $83.59 per barrel, while West Texas Intermediate crude futures for April delivery increased to $78.48 per barrel. Contracts for March delivery also saw a rise, reaching $79.43 per barrel. Analysts attributed the positive sentiment in oil markets to signs of rising demand in China, driven by a 47.3% year-on-year increase in tourism revenues during the Lunar New Year holiday. The International Energy Agency revised its forecast for global oil demand growth to 1.22 million barrels per day for the current year, a slight decrease from the previous month’s estimates. In contrast, OPEC maintained its projection of oil demand growth at 2.25 million barrels per day. The International Energy Agency had previously anticipated that oil demand would peak in 2030 as the world shifts towards clean energy. In contrast, OPEC expected oil consumption to continue rising for the next two decades.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff