The abrupt nosedive in oil price must affect the Gulf union including Bahrain, Oman, Saudi Arabia, Dubai and Kuwait. Gulf countries must have good oil reserves to fight with the existing crisis. However, sudden drop in the oil prices in the global market will certainly bring a blow to other industries including food, beverage, energy, construction, technology and financial sectors. A thorough meticulous comparison research will help people to make good prediction about the conditions of gulf union during downtime.
Direct and Indirect Impact of Downfall in Oil Price - Meticulous Analysis
For the span of past 7 months, oil prices in global market have gone down drastically. Brent Crude oil has made a fast nosedive going below $50 since 2009 with US crude natural oil ran down below $48 per barrel. Certainly, oil importers and consumers will be benefited due to such heavy fall in the oil prices. However, major oil production countries will be severely affected because of the fast drop in the price of the natural oil. Saudi Arab is one of the major members of Opec industry and it has taken good safeguards to keep alive for some time. This Gulf country has many oil reservoirs to store natural oil and gasoline products. It possesses approximately 700 billion dollars to overtake the downtime temporarily. So, this country has the financial strength to stay healthy and strong even in the existing temporary impasse. However, oil companies and owners of large oil reserves in Saudi Arab must need better prices to sell their crude and natural oil. Saudi Arab is a leading exporter to spoon feed a number of countries in Asia and Europe. So, this well known gulf union member must have more plans to prevent the loss. Same way, Kuwait, Qatar, Oman and Dubai will have to sit for meticulous study with comprehensive table work to overtake such uncomfortable situation boldly. However, good news is waiting for consumers or importers like India, Pakistan and other less developed nations. They import oil and gasoline products from other countries. So, this downfall must bring breeze of relief to these importers to some extent.
Evaluate the Overall Impact of Crude Oil Price Downfall on Other Industries
On the other hand, cheap prices of crude oil per barrel must help other industries to cheer up with lot of enthusiasm to invest money for business branding. Experts believe that petroleum and lubricant oil refining sectors, plastic manufacturing companies, and road transport agencies will have sunrise to watch with the declaration of the steady nosedive in the price tags of crude oil per barrel. So these companies will have golden opportunities to get much profit saving hard earned dollars. The automobile, aviation and road transport companies must have harvesting time due to such a remarkable downfall in crude oil prices. Inflation pressure will be controlled in oil importing industry in India. So, indirectly, there is a new avenue for Japan, India and even German to revive or rejuvenate their economical infrastructures. Stock markets, and financial sectors in other countries will have good days to come GDP will be better and these oil importing countries will have much more disposable currencies to invest in other areas to have handsome revenues faster. However, the growth of GDP in Saudi Arab, Bahrain and Oman will be slightly downward due to declination in the crude oil selling prices.
Conclusion
Saudi Arab will have to bear this jolt somehow. On the contrary, the USA has already cut subsidies and stopped oil production owing to the abrupt price declination. This super power must not be disheartened as the situation won’t be much worse than that of before 2014 onwards. Food, beverage and engineering companies will have few bucks to reset their annual financial budgets reducing the margin of loss with the declaration of the decrease in the crude oil price tags.
