JEDDAH: The six Gulf Cooperation Council (GCC) countries, which control nearly 45 percent of the world's proven crude deposits, posted a collective record fiscal surplus of around $55.4 billion in 2010, a study by Emirates Industrial Bank (EIB) said. "The GCC budgeted balance last year was a deficit of around $2.9 billion but it ended the year in a surplus of about $55.4 billion," EIB said. "This is because of a sharp rise in oil prices and the fact that GCC countries assumed relatively low prices for their crudes." The report said GCC's combined revenues for 2011 have been forecast at around 12 percent below the 2010 earnings, but it expected actual revenue to surge by 15-20 percent above projected levels through the year because of expectations oil prices will remain high. The EIB report noted that oil prices have crossed the $100 mark due to current unrest in the region, while prices projected in current fiscal year budgets in the GCC are only around $43 in Kuwait, $58 in Oman, and $55 in Qatar. It gave no figures for the UAE and Saudi Arabia but analysts said the two countries based their budgets at $55-60 a barrel for 2011. Oil prices fell for fifth trading day Monday as analysts sorted out how much the disaster in Japan will affect global energy demand. Japan, the world's third-largest oil consumer, was hit Friday with a devastating earthquake and tsunami. Some parts of northeastern Japan are still without electricity. Three of five major oil refineries have shut down, and authorities are still trying to stabilize damaged nuclear plants. Analysts expect the country's energy demand will fall in the short-term. Japan will likely compensate for the shutdown of nuclear power plants by running other generators with oil, which should boost crude imports. Benchmark West Texas Intermediate for April delivery fell 69 cents to $100.47 a barrel in morning trading on the New York Mercantile Exchange. Earlier it dropped below $99. In London Brent crude lost 15 cents at $113.69 on the ICE Futures exchange. Saudi Arabia reported a surplus of SR108.5 billion ($29 billion), almost half the GCC's combined balance last year. GCC countries recorded their highest collective fiscal surplus of around $189 billion in 2008 when crude prices soared to a record high average of nearly $95 a barrel. The surplus plunged to nearly $19.6 billion in 2009 after crude prices tumbled to $62.
