KUWAIT CITY, Nov 24: Local banks provided a record 638.4 million dinars in financing to the oil and gas sector (residents and non-residents) in October, marking an increase of 349.7 million dinars from September’s 285.7 million dinars. This represents a substantial monthly growth rate of 122 percent. The year-on-year financing also surged by 513.3 million dinars from 125.1 million dinars in October 2023 over the first ten months of 2024, total financing to the sector reached 2.072 billion dinars. The bank financing for the oil and gas sector showed fluctuations throughout the first ten months of 2024. Starting at 50.6 million dinars in January, financing grew to 278.5 million dinars in February, then continued its upward trajectory to 286.3 million dinars in March. A significant decline occurred in April, bringing financing to 167.4 million dinars, followed by a sharp drop to just 19.4 million dinars in May. However, financing picked up again in June to 245.8 million dinars and after further fluctuations, it reached 638.4 million dinars in October.

Regarding the accumulated financing balance, local banks’ oil and gas financing increased by 9 million dinars in October, reaching 2.385 billion dinars compared to 2.376 billion dinars in September. On an annual basis, financing declined by 73 million dinars, or 2.9 percent, from 2.458 billion dinars in October 2023. The rise in oil project financing marks a recovery from the low levels witnessed in 2021 due to postponed projects resulting from the Covid-19 pandemic, falling demand and reduced oil prices. July 2021 saw the lowest level of financing in history, amounting to just 100,000 dinars.

Additionally, the US Energy Information Administration reported a rise in crude and gasoline inventories, while distillate inventories fell during the week ending November 15. The crude inventories increased by 545,000 barrels to 430.3 million barrels, surpassing analysts’ expectations of a 138,000-barrel increase. However, crude inventories at the Cushing, Oklahoma, delivery center fell by 140,000 barrels. During the same week, refinery consumption of crude oil decreased by 281,000 barrels per day and refinery operating rates dropped by 1.2 percent.

By Mahmoud Shendi Al-Seyassah/Arab Times Staff