Tuesday 23 January 2018

Oil at $70 is no quick fix for Gulf economies

Oil at $70 is no quick fix for Gulf economies:

"Rising oil prices are easing fears of a financial crisis in the Gulf, but they look unlikely to trigger another economic boom in the region, a quarterly Reuters poll of private economists shows.

The Brent oil price has surged to three-year highs around $70 a barrel, from around $55 three months ago. That means a boost to oil export receipts for governments of the six-nation Gulf Cooperation Council.

Every $1 rise in the average price of oil this year would tend to improve Saudi Arabia’s budget position by roughly $2.1 billion, London’s Capital Economics estimated. Last month, Riyadh projected a 2018 deficit of $52 billion; analysts said the budget appeared to assume an oil price of roughly $55."



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