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Wednesday, 20 July 2016

The reality check on Gulf states’ economy | GulfNews.com

The reality check on Gulf states’ economy | GulfNews.com:

"Oil prices have of late witnessed a quick and unexpected recovery to $50 (Dh183.50) a barrel. This recovery was associated with fluctuations that resulted from either speculations or from geopolitical and technical developments, such as the strikes and acts of sabotage targeting Nigerian oil installations and the unstable situations in Iraq and Iran, or even the decline in US inventories and drilling rigs.

The oil price gain has occurred in spite of doubling of Iranian oil exports by 2.5 million barrels a day and the boost to Iraqi production by more than 4 million barrels a day. Meanwhile, global demand has also increased, especially in Asia where the Chinese economy is growing faster than expected, creating a state of fragile balance that has, despite fluctuations, raised prices.

It is true the that prices might continue to fluctuate over the coming months, but they should remain in the current range with some drops and rises depending on market conditions and the whims of speculators."



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