Iran re-entry to oil markets puts pressure on Gulf countries | The National

Iran re-entry to oil markets puts pressure on Gulf countries | The National:



"An oil price drop triggered by a possible return of Iran to international energy markets would heap pressure on the finances of the GCC, according to a new report.



The rapid expansion of US shale production was likely to also loosen energy supplies, putting a further drag on prices, said the first-quarter briefing on economic insight to the Middle East for the ICAEW, the accounting body.



“A fall in oil prices would push many GCC countries perilously close to their break-even prices,” said the report, which was produced by the Centre for Economics and Business Research. “As countries including Bahrain, Kuwait and Saudi Arabia have boosted social spending after the Arab Spring, they have raised the amount they need to earn from oil revenues to fund this spending.”"



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