Higher oil prices to help GCC economies to maintain sound financial balance

Higher oil prices to help GCC economies to maintain sound financial balance

Muscat: Higher oil prices would help Gulf Cooperation Council (GCC) economies to maintain a sound financial balance, according to an industry expert.

“The Organisation of Petroleum Exporting Countries (Opec) in general seeks to find a balance in oil markets by defending producers’ interests and safeguarding those of its clients,” said Fadi Reyad Chief Market Analyst at CAPEX.com MENA, in an exclusive interview with Times of Oman.

While the US is putting pressure to push oil prices lower to secure cheaper gas and diesel prices nationally, GCC countries are considering maintaining crude prices at comfortable levels at a time when demand is decelerating, he added.

Elaborating on the implications of Opec+ cuts in oil production by 2 million barrels a day on developing economies, he said that this move could help support oil prices at current or higher levels which could put pressure on developing economies, most of which are net oil importers.

“Developing economies have felt strong inflationary pressures during the last two years since the beginning of the pandemic and these pressures were further exacerbated by the war in Ukraine and could be supported by higher oil prices at a time when central banks struggle to rein in inflation, he added.”

The Opec+ had