Question

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter

Oil held near $20 a barrel as Saudi Aramco’s output surged above 12 million barrels a day, but Russia said it would refrain from further production hikes.

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter.

While state-run Aramco’s oil supply has surpassed 12 million barrels a day and is ticking higher, Russia said it won’t lift output as it’s not profitable to do so, according to a government official familiar with the country’s plans.

President Trump has said the US will meet with Saudi Arabia and Russia in an attempt to bolster prices.

The market is grappling with a bumper oversupply, while demand is set to fall by as much as 30 million barrels a day in April, according to an executive at the world’s largest independent oil trader.

Any agreement to cut output would likely be too late and would fall short of the loss in consumption, according to Goldman Sachs Group Inc.

Industry data signaled that US oil stockpiles are set for their biggest weekly increase since 2017.

“I don’t think they’re going to come to the table for talks just yet, because for both sides, it would require a significant step-down,” Amrita Sen, chief oil analyst at Energy Aspects said in a Bloomberg TV interview. “I do think both Russia and Saudi Arabia will be forced to cut back production, not because there’s a deal or they’re talking, but because of market forces.”

Prices:
West Texas Intermediate lost 21 cents to $20.27 a barrel as of 10.35am in London
Brent crude for June settlement fell 4.8 per cent to $25.09
Dated Brent, the benchmark for two-thirds of the world’s real oil supply, was assessed at $17.675 on Tuesday, down 11.5 cents from Monday when it was already the lowest price since 2002

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Required Question

Question 01: What are the major threat in the fall of Oil Price in the OPEC?

Question 02: What are the entrepreneurial skills needed in order to draw different businesses in the Gulf countries?

Question 03: Discuss the major drawbacks in the Gulf Countries economy?

Answer 1

Answer 1: Major threats in the fall of oil prices are market forces. The market has been grappled with an over supply while demand has fallen by 30 million barrels a day in April.

Answer 2: Major Enterpreneurial skills are needed in the Gulf Countries are:

Networking: One needs to be proactive, sales wouldnt come to you businessman and his team has to go out and grab it. but in gulf countries such things are not in their blood.

Flexible in prices: Businessmen sets higher prices of their products and are very rigid on it. One has to little flexible if he want to bump the business up.

Cross cultural communication:Gulf countries are limited to few countries ultiamtely it lead to a crisis in understanding of financial issues, workloads, punctuality, quality, understanding of other countries. So they have to be revolve in 360 degree.

Focus on an idea: There is a problem that people do not stick to the idea. They jump from one to another.

Answer 3: Major drawbacks in the Gulf Countries Economies are as follows:  

(a) Weak agricultural industry

(b) Imbalance between savings and investments

(c) Low growth of manufactured products

(d) Low productivity

(e) Inadequate supply of human capital

(f) High Income Inequality