The spread of interbank interest rates in the Gulf over those in the US has narrowed to its lowest level since 2008. While we correctly argued in 2016 that spreads would begin to narrow, we think that the process has now gone too far. If oil prices drop back, as we expect, and geopolitical tensions linger, interbank spreads are likely to widen again over the coming months.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.