Gulf Cooperation Council producers wary in uncertain market
The main Gulf Opec players are wary of ceding market share to rival producers, but also wish to keep prices in the comfort zone
The Gulf’s Opec heavyweights confront difficult market conditions, with price softness upsetting their best-laid plans to market new production capacity and obtain fresh revenue injections for state exchequers that are becoming less robust. Though Gulf Arab producers are in a stronger financial position than the likes of Venezuela, Nigeria and Angola – and therefore better able to withstand a period of lower prices – they are also challenged by the recent shifts in the market. Opec’s migration from a country-focused to an aggregate quota strategy has eroded discipline, and this has seeped into the Gulf Cooperation Council (GCC) member states that have historically tended to act in concert on
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