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Saturday, 30 December 2017

A historic opportunity for Gulf states to reset public finances | GulfNews.com

A historic opportunity for Gulf states to reset public finances | GulfNews.com:

"Next year will go down in history for making taxation on consumption an everyday fact of life in the Gulf countries ... or at least in most member states. Also, higher fees on governmental services are on the way. And more state subsidies are likely to be phased out.
Clearly, the days when GCC economies were regarded as tax-free havens and for offering subsidised goods are largely over. Increasingly, the Gulf would adopt the notion of pay your way, and those wanting state services must show a willingness to pay normal — not low or special — rates.

If any, the decline in oil prices on the back of strong supply in non-Opec countries, notably that of US shale oil, required a revisit of public finances throughout the GCC, including countries with substantial financial reserves. Entities like the IMF have long argued the need for more diversified sources of revenues to bolster state budgets on a sustainable basis."



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OPEC Wins Over Hedge Funds to Make 2017 Oil's Most Bullish Year - Bloomberg

OPEC Wins Over Hedge Funds to Make 2017 Oil's Most Bullish Year - Bloomberg:

"Oil bulls are charging into the new year with unprecedented vigor, and the credit goes to OPEC. The signs that the group is winning its tug of war with shale are compelling, and money managers have taken note: Their combined bets on rising prices for West Texas Intermediate and Brent crude reached record levels in December. “At least through the first half of 2018, they’ll stay pretty bullish,” said Ashley Petersen, lead oil-market strategist at Stratas Advisors in New York. “June will be a real turning point because that’s when we’ll hear about unwinding the deal, and if OPEC doesn’t handle it delicately, then there will be concern that the market will be flooded with oil again.”"



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