Kuwait among 4 GCC nations to reap $100 billion in gains from war in Ukraine
28 June 2022, 12:00 AM
31 July 2022, 12:00 AM
MEED magazine expects Kuwait and the Gulf states to contribute to raising the volume of oil production of OPEC member states this year, explaining that most of the increase will come from Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, reports Al- Anba daily.
The magazine added that the high oil prices and the advantages of adhering to the production agreement signed by the oil producing countries “OPEC +” are enough to dispel the fears that the parties involved in the region and while the Ukrainian war continues to spin out of control, it has become possible to consider the Gulf oil-exporting countries among those who reap the benefits of this war.
An analysis by former editor-in-chief Edmund O’Sullivan that oil prices rose to more than 130 dollars a barrel in early March, and there is consensus that these prices will remain in the range of $100 dollars in 2022 — which is 50% more than the expectations of the International Monetary Fund — and that compared to a price of less than $70 that prevailed last year.
The analyst said that despite expectations of a slowdown in global oil demand, it will remain above 100 million barrels per day in 2022. This would lead the four Gulf OPEC countries to reap unexpected gains related to the Ukraine crisis by building wealth of at least $100 billion in 2022, which is equivalent to 10% of the expected gross domestic product of the four countries.
Even if the war ends quickly, oil prices above $90 will remain prevalent during 2022 and 2023, which will boost growth and export revenues for all GCC countries.