Factors affecting the price of oil and its impact on the GCC Countries (2014-2003)


The Arab Gulf States own huge oil resources, which are the most important sources of energy and raw material for many industries. And any changes in the international oil prices will influence the development process in these economies. However, due to the crucial role of GCC in the international oil market and the importance of its oil policies in maintaining a balanced global oil market and the importance of oil revenues to the economies of GCC as a major source of the public budget. Hence, the growth rates and investment of other economic sectors are reliant on the oil export revenues. The objective of this paper is to identify the factors that affect the international oil prices and its influences on the exporter countries. The study revealed that the GCC countries must abide by the decisions of OPEC and its production quotas in order to maintain rights of other oil producing countries and avoid to exceed level of limited oil quotas and declining level of oil prices.