Yemen Oil Revenue Falls Below Cost of Importing Fuels

Yemen’s government for the first time spent more to import fuel for domestic use than it received for crude oil export sales, the state news agency reported.

Oil export revenue fell 26 percent during the first half of the year as output dropped, Saba reported, citing a Central Bank of Yemen report. Export sales were $1.328 billion while the government spent $1.368 billion on imports for the first half of the year.

Domestic consumption of imported fuels reached 10.6 million barrels as exports fell 25 percent to 12 million barrels from 16 million barrels in 2012. The nation, which has an estimated reserve of 3 billion barrels of oil, produced an average of 180,000 barrels a day last year, down 21 percent from 2011, according to data compiled by Bloomberg.

Petroleum accounts for about 70 percent of the government’s revenue, according to the U.S. Central Intelligence Agency’s World Factbook.

To contact the reporter on this story: Mohammed Hatem in Dubai at mhatem1@bloomberg.net

To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.