Oil exporting countries will continue to reap large profits from high oil prices caused by underinvestment, structural changes on supply and demand and geopolitical tensions, Kuwait-based Global Investment House (GIH) said Tuesday.

Net oil export revenues of the Organization of Petroleum Exporting Countries (OPEC) are forecasted at 522 billion U.S. dollars and 495 billion dollars for 2006 and 2007 respectively, GIH said in a newly-released report.

OPEC net oil export revenues for 2005 are now estimated at around 473 billion dollars, up 43 percent from 2004 levels, said the report.

Oil prices have reached record high of 75.76 per barrel and have increased by almost 16.9 percent so far in 2006.

The report pointed out that main factors in this tremendous increase are the underinvestment in oil sector, structural changes on supply and demand sides and refining issues which are pushing prices higher.

Meanwhile, geopolitical tensions with the current Israeli attacks on Lebanon, uncertainty of oil production from Iran and supply disruption from west Africa are the other contributing factors for high prices.

According to OPEC, world oil demand is estimated to grow by 1. 38 million barrels per day (bpd), or 1.66 percent, to 84.6 million bpd in 2006. It expected oil prices to range between 55-60 dollars per barrel during 2006.

World oil demand in 2007 is predicted to average 85.9 million bpd, implying a rise of 1.3 million bpd, or 1.5 percent, over total 2006 consumption.

The production of OPEC crude oil in 2006 is expected to average 29 million bpd. On a quarterly basis, the demand for OPEC crude is expected at 28.6 million bpd in the third quarter and 29 million bpd in the fourth quarter of 2006.

In 2007, the demand for OPEC crude is expected to drop to 28.3 million bpd, a decline of 0.7 million bpd compared to the previous year.

Non-OPEC oil supply in 2006 is expected to average 51.4 million bpd, representing an increase of 1.2 million bpd over the previous year. In 2007, non-OPEC oil supply is expected to average 53.1 million bpd, representing an increase of 1.7 million bpd over 2006.

OPEC, an international organization made up of 11 oil producing nations, supplies about 40 percent of the world's oil.

Source: Xinhua