Skip to main content

Oil price drop, Lebanon default risk, failed Saudi attacks

The fall in oil prices on the back of fears about the coronavirus outbreak in China doesn’t pose a significant threat to Gulf economies, but it has raised the chances of deeper OPEC+ oil production cuts. A default in Lebanon is now almost entirely priced into markets and, while the passing of the 2020 budget may help to secure external financing, the window to do so is closing quickly, raising the risk of a disorderly crisis. Elsewhere, Wednesday’s failed attacks on key infrastructure in Saudi Arabia highlights geopolitical risks in the region remain elevated and are a major risk to the economic outlook.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access