Saudi-UAE oil deal, Saudi fuel cap, Moroccan reforms

Reports suggest that Saudi Arabia and the UAE have seemingly reached an agreement over oil output quotas and the resulting rise in production will boost economic recoveries across the Gulf over the coming quarters. Meanwhile, the Saudi government announced it would freeze local fuel prices this month, which may raise concerns about officials’ commitment to the fiscal reforms implemented in recent years. Elsewhere, Morocco turned back to fiscal consolidation and outlined plans to loosen the grip on the dirham, all of which is positive for the long-term outlook but may weigh on the near-term recovery.