Oil windfall boosts Gulf spending

[JCMach1]

The windfall from oil exports in recent months may have given the Gulf Cooperation Council (GCC) states enough cushion to enable them to carry on with their development projects and investment ventures for months in the likely event of another recession hitting the global economy, experts say.

International oil prices have surged nearly $40 (Dh146.92) a barrel in the last six months due to the West's tensions with Iran over its controversial nuclear programme and supply concerns, given the unrest in several oil exporting countries in the Middle East... "The crude exporting countries know very well that the windfall gains do not last for long. This has happened before and will happen again. The countries may have already planned how they are going to use their surplus from oil revenues. In my view, much of the surplus funds would be deployed in developmental projects and will get invested through their sovereign wealth funds," Amerah added... http://gulfnews.com/business/oil-gas/oil-windfall-boosts-gulf-spending-1.987736

Looks like we will all be waiting a long time for a GCC coup.

[Douglas Carpenter]

1. fear of war in the Gulf is - in a very narrow economic sense - in the Gulf State's best interest

Now, out and out war could be a totally different manner - since we don't know what degree of destruction that might bring. But, I cannot help but think - and I'm not suggesting any sort of conscious conspiracy - that with so many people benefiting from fear of war - the motivation for normalized relations is reduced while the motivation to "keep fear alive" - just short of out and out war -is increased.

[JCMach1]

2. Press TV last week gave a report of a burning Saudi pipeline (falst by the way)

and the price of oil spiked 15-20$.

Speculators are completely driving the market now.

Think about it... it's a win/win scenario for them.

If war starts - CHECK, profits.
If demand surges from economic recovery- CHECK, profits.


The only downside is if the economy crashes.

[ellisonz]

3. Hehe...