Oil prices in freefall

Fears for the health of the global economy have sent Brent crude prices down by more than $30 per barrel in the past month, raising fresh concerns over the sustainability of the recent fiscal packages across the oil-rich Gulf. In contrast, the resource-poor Arab countries will be relieved with the recent falls in oil prices, which will help to ease pressures on both fiscal and external deficits. Nonetheless, these are largely medium term concerns. In the meantime, although the Gulf economies are set to slow, they should still outperform the rest of the Arab region.