Oil Will Be Erratic and Volatile in 1Q: StanChart

The video discusses the economic outlook for GCC countries, emphasizing that despite challenges, positive growth is expected. The volatility in oil prices, influenced by OPEC's production decisions, is a key factor. Lower oil prices impact GCC economies by reducing government revenue, potentially leading to deficits in countries like Bahrain, Oman, and Saudi Arabia. Iraq's increased oil exports contribute to market supply. The video also explores the idea of GCC countries moving away from a dollar peg, though it concludes there's no current need for such a shift.

What is the expected trend for GCC economies in 2015 despite the challenges?

• Negative growth rates

• Positive growth rates

• Stagnant growth

• Decline in economic activity

How does the volatility in oil prices affect GCC economies directly?

• Decreases government revenue

• Reduces diversification projects

• Increases government revenue

• Boosts infrastructure spending

What is the main reason for the predicted deficits in Bahrain, Oman, and Saudi Arabia?

• Low oil production

• High levels of debt

• High fiscal break-even prices

• Increased government spending

Why are the predicted deficits in some GCC countries considered manageable?

• Increased exports

• Strong economic growth

• Low levels of debt

• High oil prices

What significant change did Iraq make in its oil exports in December?

• Increased exports to the highest since the 1980s

• Maintained the same level

• Decreased exports

• Stopped exports completely

What is the expected average oil price per barrel if production cuts occur in the second half of 2015?

• $70 per barrel

• $50 per barrel

• $100 per barrel

• $85 per barrel

Is there a current willingness among GCC countries to move away from a dollar peg?

• No, but considering it

• No, not at all

• Yes, immediately

• Yes, in the near future