Wednesday 25 July 2012

The confusing state of oil | GulfNews.com

The oil industry is facing uncertainty and significant unknowns with oil prices fluctuating sharply. This makes it difficult for economic experts and analysts to come up with solid analyses and forecasts, due to political events and security tension surrounding the Arabian Gulf — the world’s largest black gold mine. No doubt that opinions and analyses are affected significantly by the on-going political and security events in the region and the entire world.
The effects of oil prices are crucial to the GCC economies, a fact that can be easily noticed through a review of economic indicators of GCC countries. Through a quick review, there are huge gaps in GCC’s economic indicators of growth, the size of GDP and surplus balance of trade, and other important indicators, within short periods of time relatively.
Previously, oil producers and exporters in the world rejoice with any rise in oil prices, but the skyrocketing prices have created a state of confusion in oil exporting countries, which were surprised by record oil revenues, which have accumulated without appropriate investment channels to invest these revenues.

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