High oil prices not a panacea for Gulf economic woes
\nBy Damian Reilly
\nTuesday, 29 March 2011 10:37 AM<\/p>\n
High oil prices will hurt Gulf economies\u2019 prospects of recovering from the global economic downturn, forcing up the cost of imports to the region, Nick Bullman, founder and CEO of London-based consultancy firm CheckRisk said on Monday.<\/p>\n
Speaking to Arabian Business, Bullman said: \u201cA high oil price is of course good for the Gulf economies, but anyone who thinks it is a cure-all for all economic problems there is mistaken. The cost of oil is factored into everything. Fuel is used to import foodstuffs and building materials. The higher the oil price, the higher those fuel costs, the higher the prices at market.\u201d<\/p>\n
He added the optimum oil price for Gulf economies was around $80 a barrel.<\/p>\n
\u201c$80 is the price that puts a smile on everyone\u2019s face. It doesn\u2019t scare buyers away, it doesn\u2019t cause the cost of filling cars in the West to rocket, and it\u2019s twice the price upon which most GCC states\u2019 fiscal budgets are predicated. If we could keep the price at $80, everyone wins,\u201d he said. …more<\/a><\/p>\n