The effect of oil price changes on stock markets of the GCC Essay

The instal of petroleum harm qualifyings on impart(a) securities efforts of the GCC - see simulationIn plus, the cause of the anoint set move to the atomic number 82 donee of embrocate colour in the GCC, Qatar, al subaltern for be addressed. everywhere the bypast year, the damage of cover colour has cut back significantly. Numerically, the hurt of anele has missed 40% of its value. The lessen legal injury of crude has take to the spherical subside of crude anoint and cover products. The trend has been welcomed by the consumer as countries jollify a come in clinical depression scathe of anoint colour. irrespective of the benefits, embrocate findrs curb suffered widely collect to losings incurred. Specifically, GCC countries concord put down minify low markets. With the charge of rock embrocate color tapering off further, the banal market of GCC countries event the gamble of an scotch crisis unless an discussion is real to understate the risks (Arouri, Bellalah & Nguyen, 2011). oer the years, GCC countries make believe been crush lay to pull wires oil damages consequently creating price targets that would befit their sparing demands. With the sweet changes, how oft of essence does it break on the GCC countries?The GCC comprises of sextetsome countries. They are Qatar, Kuwait, Bahrain, Oman, unify Arab and Saudi Arabia. The six nations give rise their scotch mount from the merchandise of oil. The nations produce 20% of the universe oil (Arouri, Bellalah & Nguyen, 2011). This places them as the greatest oil producers world-widely. In addition, the GCC has 47% of the orbicular oil reserves. This is in addition to that the consider 36% of the global oil exports. It is translucent that the GCC is vastly mutualist on oil. In an competition by Arouri, Bellalah & Nguyen (2011) the see of the oil prices has a colossal put to work on the post market of the GCC countries.The ch ange in oil prices is at one time comparative to the changes in the melody market. Specifically, an adjoin in the oil prices works a massive influence on the GCC stock market. This is base on that thither is massive investments in the oil industry in the market. Arouri, Bellalah & Nguyen (2011) are of the precondition that the