QATAR IMMUNE TO OIL PRICE DECLINE
The recent drop in hydrocarbon prices, if sustained, could have a significant impact on the region's economic and financial indicators.
Bahrain and Oman are the most vulnerable to a decline in the hydrocarbon market, while Qatar and the UAE would be largely immune to the impact, Standard & Poor's said in its “Industry Credit Outlook.”
The ratings agency said crude oil spot prices have fallen by more than 25% from their mid-June high. The key drivers for the declines are likely to be the continued supply increase in North America, the Saudi move to cut crude prices to Asia, the strengthening US dollar, and softening demand from European and Asian economies. The resumption of shipments from Libya and continued production from Iraq despite conflicts have also contributed to the decreases. In addition, Saudi Arabia, the most influential member of Opec, has not cut output to support prices.