RIYADH, Sept 5: With oil prices running high, oil revenues of the Opec members are expected to hit record levels in 2006, reaching as high as $521.9 billion, the US Department of Energy Information Agency (EIA) said.

Opec, controlling more than 70 per cent of the world's proven oil reserves, had earlier recorded a staggering increase in their 2005 earnings that grew by nearly 43 per cent to $473 billion.

This year's income is projected to surge even further to $521.9 billion before it slips back to around $495.2 billion in 2007, the US report added.

However, after adjusting for inflation, Opec’s income for 2006 will still remain below the income realised in 1980, according to US estimates, when oil export earnings reached $571.8 billion after adjusted for inflation.

In the wake of the unprecedented levels of prices in the crude markets,

Saudi Arabia, the major Opec oil producer, is also on track to run its eighth current account surplus in a row this year.

Standing at SR428.2 billion ($114.1 billion), this would be the largest recorded surplus in its history, a separate study conducted by the local Samba Financial group and reported by local newspapers said.

The kingdom will earn a SR761 billion ($202.9 billion) in oil exports earnings this year, an all-time record, representing a 25 per cent increase in oil earnings compared to last year.

"The year is shaping up to be another record year for (Saudi) fiscal performance with the largest budget surplus on record revenues, spending and declining debt," said the study adding that the Saudi government would close the year with a surplus SR250bn ($66.6 billion) despite spending more than projected.

"Saudi government spending was growing 20 per cent annually, which in itself represented strong fiscal stimulus to the economy," the report stated.

The pattern of government spending mirrored the nature of the boom so far driven by growth in government expenditures and investments in expanding the operations of Saudi Aramco, the world's largest oil company.

"But a substantial amount of the oil revenues is accumulating as foreign assets at Sama ( Saudi Arabia Monetary Agency), about SR25.2 billion per month, which contributes to the view that the strong economic growth the kingdom is experiencing will last for many years, as much of the oil revenue is being set aside for future needs," said the study.