Oil Prices Strain Gulf Arab Budgets, Retard Growth

Oil Prices Strain Gulf Arab Budgets, Retard Growth

Experts say a majority of key oil exporting Arab countries could face a budget deficit of at least $122 billion in 2015 as the result of the falling oil prices.

They say the economies of most leading Arab states grew by an average of about 50% in 2014 thanks to high oil prices.

However, the economic prospects of those countries are not promising for 2015 if oil prices keep plunging, experts have been quoted by Oman’s Alwatan newspaper as saying in a report.

The report adds that the international prices of oil are expected to remain within the range of $55-$60 per barrel for 2015. They also say the prices will not decrease for at least the next three years.

The international prices of oil started to decline from about $100 per barrel in June 2014 due to several crucial factors including excessive production from US shale projects and sluggish global demand.

The free fall of the prices even deteriorated after the Organization of Petroleum Exporting Countries (OPEC) decided in November 2015 not to reduce output.

The prices currently stand within the margin of $50-$60 per barrel.

Source: Press TV

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