De kosten om olie uit de grond te halen zijn er minder hoog, dus raken ze in de Golfregio niet zo snel in paniek als de olieprijs daalt. Maar dat is anders nu de prijs onder zestig dollar per vat is gekomen en de beurzen wegzakken.
As the price of oil continues to fall, share prices on the Gulf region’s stock markets have plummeted in parallel. The price of oil reached a yearly low of $60 a barrel on Friday, and we’re now looking at a possible $50, which would create a truly bleak outlook for economic prospects in the Middle East. On Monday, the price touched a low of $56.25 before a modest rebound.
“The freefall of the price of oil has unleashed panic here,” says Wafik Dawood, portfolio manager at Compass Capital in Cairo. On the Egyptian stock exchange, rates fell by 5% on Sunday. In Qatar they fell by 6%, and in Dubai 8%. The region’s stock indices therefore lost most of the year’s profit. In majority Muslim countries, exchanges tend to be open on Sundays and closed on Fridays.
“Morale is poor,” says Sanyalak Manibhandu, head of research at NBAD Securities in Abu Dhabi. “The falling rates of the past few weeks are accelerating.”
On the Saudi Arabian stock market, losses were somewhat more limited Sunday, to 4%, although investors fear a more long-lasting downswing. Since September, the exchange has lost 28% of its value in riyals, the Saudi Arabian currency, and is only quoting at November 2013 levels.
Read the full article: The ‘Dubai Omen’ And Global Risks Of Plunging Oil Prices
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