Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

US output, potential low demand pose risks to Gulf oil IMF  Join our daily free Newsletter

MENAFN - AFP - 08/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) A rapid growth in US oil production combined with potentially weaker global demand present a downside risk to Gulf oil output and prices, the International Monetary Fund warned Tuesday.But despite an expected drop in their current account surpluses, most Gulf Cooperation Council economies continue to have "substantial buffers" to cope with short-lived price shocks, the IMF said in its World Economic Outlook.And economic growth in most of the oil-rich GCC economies is to hover near the rates registered last year, with Saudi Arabia's largest Arab economy expanding by 4.1 percent in 2014, compared to 3.8 percent in 2013, it said."Faster-than-expected growth in the US oil supply and lingering risks of weaker-than-expected global oil demand because of a slowdown in either emerging markets or advanced economies present downside risks to oil prices and GCC production," it said.The GCC comprises top oil exporter Saudi Arabia, as well as Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates.US oil output has been rising fast on the back of the newly-tapped shale-based reserves.OPEC oil cartel said last month that supply from non-members is expected to increase by 1.31 million barrels per day this year, mainly from the United States, Canada and Brazil.Large current account surpluses in Middle East and North Africa oil exporters are expected to decline in 2014 "because of lower oil revenues," the IMF said."Although fiscal positions have been weakening across the GCC economies over the past several years, most still have substantial buffers to withstand large shoks to oil prices, provided the shocks are short lived," it said.

Those countries adopted expansionary fiscal policies to fend off the impact of the global financial crisis in 2008, channelling some of the oil windfall into infrastructure projects.- Reduce dependence on oil -"Policy priorities continue to be centred on diversifying these economies to reduce dependence on oil, increase employment opportunities in the private sector for nationals and enhance resilience to shocks," the IMF said."Reforms to foster entrepreneurship, along with public wage and employment restraint, are key," it added. Economic growth in the UAE is expected to be around 4.4 percent and 4.2 percent in 2014 and 2015 respectively, compared to 4.8 percent last year, the IMF said.Dubai's winning of the right to host World Expo 2020 has further strengthened growth prospects in the UAE where real estate prices are rising at a "fast pace," the IMF said.Dubai's property sector had nosedived due to the global financial crisis, following five years of rapid growth. But the sector has made a strong comeback as investors flocked back in the emirate that is perceived as a safe haven amid regional turmoil.Growth in gas-rich Qatar will ease slightly from 6.1 percent last year to 5.9 percent in 2014, picking up again in 2015 at 7.1 percent.The emirate is expected to spend billions of dollars on infrastructure projects in preparation for the football World Cup tournament in 2022.Kuwait's economy will grow 2.6 percent this year and 3.0 percent in 2015 after growing by just 0.8 percent last year.

 


AFP




  MENA News Headlines
 May 25 2016 - Saudi's Vision 2030 repositions its economic situationMENAFN
(MENAFN) Saudi Arabia plans to overcome its relaince on oil and integrate its economy and markets on an international scale, in order to attract more foreign investors.Moreover, Vision 2030 will ...

 May 25 2016 - Saudi, Egypt agree on USD 3.6bn property projectMENAFN
(MENAFN) The USD 3.6bn Mountain View iCity was proclaimed, Egypt's biggest next project which is a joint venture between Egypt and Saudi Arabia.Furthermore, the project reaffirms the confidence ...

 May 25 2016 - Qatar, Saudi Arabia trade reaches USD 1.9bnMENAFN
(MENAFN) The mutual trade between Qatar and Saudi Arabia reached USD 1.9bn last year, while Qatar's imports from KSA were at USD 1.4bn and exports at USD 0.5bn.Moreover, Saudi Arabia is a main trade ...

 May 25 2016 - Morocco cuts 2016 growth forecast to 2 percentMENAFN
(MENAFN) Morocco has reduced its economic growth forecast for the recent year to less than 2 percent from 3 percent.Moreover, the decline was due to cereal harvest sufferment from its worst drought ...

 May 25 2016 - Business trade amid Gulf nations reaches USD 878bnMENAFN
(MENAFN) The intra-local trade among the Islamic countries reached USD 878bn last year in order to enhance the volume of trade exchange among them.Furthermore, Saudi Arabia plans to attract many ...

 May 25 2016 - Dubai sets up USD 27mn waterside projectMENAFN
(MENAFN) Dubai Properties Group (DPG) proclaimed that it began building a new waterfront project, which will involve a 12 kilometer promenade, floating restaurants.Moreover, the project will be ...

 May 25 2016 - Abu Dhabi inflation rate up 2.4 percentMENAFN
(MENAFN) Abu Dhabi inflation rate jumped 2.4 percent in April compared to the same period of last year, while housing, water, power and other fuels added pressure on prices.Howvever, the CPI declined ...

 May 25 2016 - Grandson to auction Miro paintings to help refugeesThe Peninsula
(MENAFN - The Peninsula) Gallery assistants pose with a work by Spanish artist JoanMirotitled 'Le Fantome de l'atelier' will be auctioned at Christies in London on May 17, 2016. AFP / JUSTIN TALLIS ...

 May 25 2016 - Tony Blair says defeating Islamic State requires 'proper ground war'The Peninsula
(MENAFN - The Peninsula) LONDON: Former British Prime Minister Tony Blair says the Islamic State group will be defeated only with a ground war involving Western troops. Blair says air strikes ...

 May 25 2016 - New refugees arrive to Spain from GreeceThe Peninsula
(MENAFN - The Peninsula) Children walk at the Moria detention camp for migrants and refugees at the island of Lesbos on May 24, 2016. AFP / STR By Alyssa McMurtry MADRID: A new group of ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help