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)

Oil Prices is the world have consistently been driven by a blend of solid interest in created nations like US, Western Europe and so forth and developing markets like Brazil, China, India and so on. India for instance is among the most elevated merchants of Crude Oil on the planet at around 230 million tons adding up to about USD 120 Billion - the sourcing is from OPEC and non-OPEC countries. Request in developing markets like India is vigorously determined by versatility - traveler and business vehicles. Over the long haul better and more eco-friendly vehicles constantly moderate increments sought after.

The world is reliably moving towards progressively stringent eco-friendly measures, for example, Euro Stage 3 and past. What's more we have likewise seen an overwhelming interruption because of the development of the sharing economy drove by organizations like Uber, Grab, Ola and so on.

Furthermore, this is a wonder making up for lost time around the world. This is expanding prompting progressively productive use of traveler and business vehicles and henceforth less utilization of oil based fuel right now.

Another hit to the long haul request of Oil through versatility is the development of electric and half and half advancements in vehicles. Brands like Tesla Motors have indicated the way and now every major Automaker on the planet is focusing on intensely putting resources into R&D Efforts around building vehicles with clean vitality as manageable endeavors for what's to come. These elements have strongly affected the Oil Prices from an interest situation.

From the stockpile side the US Shale Oil wonder has now made US probably the biggest exporter of OIl and this has added to the inventory excess. Till date the Oil delivering countries have composed well as far as a maintainable estimating for raw petroleum with the goal that everybody benefits. The entirety of this has, be that as it may, taken an unexpected turn in the quick short run because of the Coronavirus pandemic which has hit all economies operationally in the prompt term as a major overall Black Swan occasion.

It has most likely triggerred what might have in any case accepted a very long time to occur as nations and poties respond in an automatic example to secure their own advantages no matter what, giving up long haul understanding with different countries.

2)

Inlet Countries have customarily been reliant on Crude Oil and its related organizations as the essential drivers of development in their economies and have focused on little else. A long haul way to deal with derisking their economies by differentiating into different areas is significant and truth be told, long past due.

Considering the way that the greater part of the enormous Gulf Economies are genuinely high per capita salary countries and can save assets as far as getting the hang of, preparing and advancement they ought to be taking a gander at administrations as the driver for development by putting resources into individuals - regardless of whether indigenous or by empowering relocation.

This should be possible by being progressively open and socially engaging the manner in which Western Europe has figured out how to be in the course of the most recent few centuries. The travel industry and liberal Education have assumed an extraordinary job right now could be a model that the Gulf Nations could follow. It will require basic change in perspectives and organization, likewise a casual way to deal with strict convictions and authoritative opinion.

3)

The greatest downside in the Gulf economies is obviously the reliance on Crude Oil and the absence of derisking activities taken by these economies over some stretch of time. There has been no push to take a gander at different divisions and find a way to moderate this hazard.

Likewise a ton of financial choices are reliant on associations with the US - particularly for nations like Saudi Arabia. There is likewise a critical dependance on transient work populace from different pieces of Asia which adds fluctuation to little however rich economies like UAE, Dubai and so forth. Constrained characteristic assets past Oil add to the drawbacks as it limits mechanical movement also.

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