Publication

This brief examines some of the reasons for the steep fall in the price of oil seen in the latter half of 2014 and first half of 2015. The authors discuss 1) why despite the low oil price, Saudi Arabia and the other Gulf states have not cut back on production; 2) how the low price of oil could potentially cause problems for the governments of the Gulf states who rely on the revenue oil generates to subsidize and provide public sector employment for their populations; and 3) the wider effect low oil prices could have on the economies of other countries in the Middle East.