Monday, December 15, 2014

Pyrrhic Victory in oil for GCC?

As Saudi Arabia works out a strategy for a long term foothold in the market, it may well see a large chunk of its reserves down. It would disturb allies too. Countries like Oman would be raising dissident voices as they would feel the heat of slide much  more. Bahrain too would be under serious pressure. Dubai ( a city state within UAE dependent on Abu Dhabi's funding in exigencies) may not totally concur with the UAE's   official version that UAE does not care if oil slides to $ 40 . So Saudi's allies themselves may question it even though all except Oman may welcome a weaker Iran. Money matters! Less money matters more when you are used to more money...

Good news from USA  on factory output shows it is back on track despite a strong dollar. Some good news for the markets. Will Wall Street reverse the trend  of the previous week? 

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