Rising oil prices seen boosting GCC economic growth in 2010
Posted: Tue December 22, 2009 9:29 pm
UAE. The economic growth of the oil-rich Gulf Cooperation Council (GCC) nations will accelerate next year with crude prices predicted to rise, a survey showed this week.
The majority of senior officials among 25 top firms in the UAE surveyed are positive about growth and believe that only a major drop in crude prices can reverse the growth cycle, according to a report in Emirates Business.
Top executives surveyed believe such fears are not backed by recent events, saying "On the contrary, higher oil prices can be seen on the horizon as good news."
The Washington-based Energy Information Administration (EIA) has forecasted that West Texas Intermediate (WTI) spot prices will weaken soon, falling to about US$75 per barrel next February, and then rising to about US$82 dollars by the end of 2010.
Britain's Economist Intelligence Unit (EIU) has also forecast a 21% rise in the average oil price, from US$62 a barrel this year to US$75 in 2010.
"A sharp fall in oil prices is not anticipated at this time and on the contrary, the average price of oil should be higher in 2010 in comparison to 2009. (It will) translate to a bounce back in nominal GDP across the GCC in 2010 -- that is very positive," Giyas Gokkent, chief economist at the National Bank of Abu Dhabi, was quoted as saying.
The GCC has about 45% of the world's proven oil reserves.
Posted: Tue December 22, 2009 9:29 pm
UAE. The economic growth of the oil-rich Gulf Cooperation Council (GCC) nations will accelerate next year with crude prices predicted to rise, a survey showed this week.
The majority of senior officials among 25 top firms in the UAE surveyed are positive about growth and believe that only a major drop in crude prices can reverse the growth cycle, according to a report in Emirates Business.
Top executives surveyed believe such fears are not backed by recent events, saying "On the contrary, higher oil prices can be seen on the horizon as good news."
The Washington-based Energy Information Administration (EIA) has forecasted that West Texas Intermediate (WTI) spot prices will weaken soon, falling to about US$75 per barrel next February, and then rising to about US$82 dollars by the end of 2010.
Britain's Economist Intelligence Unit (EIU) has also forecast a 21% rise in the average oil price, from US$62 a barrel this year to US$75 in 2010.
"A sharp fall in oil prices is not anticipated at this time and on the contrary, the average price of oil should be higher in 2010 in comparison to 2009. (It will) translate to a bounce back in nominal GDP across the GCC in 2010 -- that is very positive," Giyas Gokkent, chief economist at the National Bank of Abu Dhabi, was quoted as saying.
The GCC has about 45% of the world's proven oil reserves.