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Since themidof2014, global oil priceswitnessedsignificant developments
with continuous decline following 3 years of relative stability of the
oil barrel price around $100. This has triggered concerns and questions
over the reasons behind the oil losing its par value in a very short time
within no more than 4 months. It also raised questions over the potential
implications of these developments for the global economy in general and
the oil producing and exporting countries and the future of the oil industry
in particular.
According to a recent study issued by OAPEC Secretariat General titled
“Global Oil Price Developments and their Implications for OAPEC Member
Countries’Economies”, the falling oil prices had a direct impact on the financial
resources of OAPEC member countries and consequently affected GDP growth
rates, exports, trade surplus and public budget growth.
Primary projections indicate that the value of OAPEC member countries’ oil
exports has dropped by about $132 billion during 2014 compared to its 2012
rates, representing a decline of 18.8% and reaching about $571 in 2014.
The falling oil prices led to a drop in the governmental public revenues in
varied rates in most of OAPEC member countries. Some member countries
continue to spare no effort in supporting their public spending in order to
boost growth in other sectors especially investment. Other member countries
adopted austerity policies to reduce public spending to tackle the drop in public
revenues. The International Monetary Fund projects that public budgeting
Editorial
Current Global Oil Price Developments and their
Implications for OAPEC Member Countries’ Economies