Quotes: US 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 shocks 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.


 






  MENA News Headlines
 Jul 23 2014 - Majid Al Futtaim posts USD3.5b H1 revenuesMENAFN
(MENAFN) Dubai-based shopping mall developer Majid Al Futtaim (MAF) posted a 14 percent growth in the first-half revenues, citing growing earnings across its business units, Emirates 24/7 ...

 Jul 23 2014 - Bahrain's BCFC profit up 13 percent in H1MENAFN
(MENAFN) Bahrain Commercial Facilities Company (BCFC) saw a 13 percent rise in consolidated net profit at USD19.1 million in the first half of the current year compared to USD16.88 million in the ...

 Jul 23 2014 - Asian, Western firms to invest in UAE's oilfieldsMENAFN
(MENAFN) Asian and western firms plan to help operate the UAE's biggest oilfields after a deal with oil majors expired this year, according to Arabian Business.A final decision on the winning firms ...

 Jul 23 2014 - Dubai's Arenco awards Chinese firms two contractsMENAFN
(MENAFN) China State Construction Engineering Co (CSCEC), the Asian superpower's third largest construction firm, has been awarded two contracts from Dubai-based based developer Arenco Real Estate to ...

 Jul 23 2014 - Kuwait- All must work to encourage youth to be creative productive: AmirArab Times
(MENAFN - Arab Times) WAIT CITY July 21 (KUNA): His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah received Monday at Seif Palace the top ten winners of Al-Mubader Youth-Support and Small ...

 Jul 23 2014 - Female thief caught red-handed at Grand MosqueArab News
(MENAFN - Arab News) A female pickpocket was caught at the Grand Mosque in Makkah with more than SR100000 in cash gold mobile phones and women's bags an online paper reported.Field teams working with ...

 Jul 23 2014 - UAE's Just Falafel to expand in OmanMENAFN
(MENAFN) UAE-based food operator Just Falafel said it plans to expand in Oman in a deal to open 10 new outlets, according to Arabian Business.The new stores will be distributed in several places ...

 Jul 23 2014 - Africas oil amp gas sector continues to show substantial growth despite regulatory uncertaintyMENAFN Press
(MENAFN Press) JOHANNESBURG South-Africa July 23 2014/African Press Organization (APO)/ -- The challenges facing oil & gas companies operating in Africa continue to be diverse and numerous fuelled by ...

 Jul 23 2014 - Central African republic sanctions draw attention recomendationMENAFN Press
(MENAFN Press) NEW YORK July 23 2014/African Press Organization (APO)/ -- On 21 July 2014 the Security Council Committee established pursuant to resolution 2127 (2013) concerning the Central African ...

 Jul 23 2014 - Switzerland commits a further CHF 500000 to fight Ebola epidemic in West AfricaMENAFN Press
(MENAFN Press) BERN Switzerland July 23 2014/African Press Organization (APO)/ -- The SDC is allocating CHF 500000 to support Médecins Sans Frontières-Switzerland (MSF-Suisse) in its work to combat ...

more...


 






Google

Taqs

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help