Oil prices collapse endanger plans to transform. Gulf states save and diversify
source: http://www.ft.com/cms/s/0/59901742-cbda-11dd-ba02-000077b07658.html?nclick_check=1
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- arcticspirit
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As Gulf states' earnings ballooned in recent years on the back of soaring oil prices, governments began to save and diversify. Unlike in previous booms, they appeared determined to improve the foundation of their economies in a bid to ensure they withstood oil price shocks.
But the financial crisis and the dramatic collapse in oil prices look set to endanger plans to transform the economies - a process deemed critical to providing private sector jobs for growing, young populations.
While officials and analysts say the region is in a position of relative strength - largely because of accumulated savings - the reality is Gulf fortunes remain highly dependent on the vagaries of an oil price that has dropped to $45 per barrel. The region's producers will be desperate to stem the price decline when Opec meets in Algeria today.
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Would this not be wonderful if this meant the end of proverbial robbery at the pump?
Do you think we will see lower prices?
But the financial crisis and the dramatic collapse in oil prices look set to endanger plans to transform the economies - a process deemed critical to providing private sector jobs for growing, young populations.
While officials and analysts say the region is in a position of relative strength - largely because of accumulated savings - the reality is Gulf fortunes remain highly dependent on the vagaries of an oil price that has dropped to $45 per barrel. The region's producers will be desperate to stem the price decline when Opec meets in Algeria today.
▐─────────────▌
▐ Vote up & share ♥ ▌
▐─────────────▌
Would this not be wonderful if this meant the end of proverbial robbery at the pump?
Do you think we will see lower prices?
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arcticspirit
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I have this gut feeling that this lower gas price is only going to happen for a few weeks or maybe a month. But if you think actually it never should have happened to begin with.
- 4 years ago
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arcticspirit
