Report: Energy producers in Middle East to earn billions less in oil revenues
The International Monetary Fund's prediction that was reported by The Associated Press is the latest negative outlook for Middle Eastern economies.
The International Monetary Fund (IMF) provided another bleak outlook for oil-producing Middle Eastern economies today.
The IMF said on Monday it expects energy-producing countries in the Middle East will rake in $270 billion less in oil revenues than last year. The COVID-19 pandemic and oil price crisis will make the states’ economies contract by 7.3% overall, the international financial body predicted.
Oil-rich countries in the Middle East have experienced hardship this year due to both the pandemic and falls in oil prices. An oil price war in March between Russia and Saudi Arabia caused global oil prices to plummet. They were further brought down by the massive decrease in global travel resulting from the coronavirus pandemic.
Oil prices have since recovered somewhat amid production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. Several Middle Eastern countries are OPEC members, including Saudi Arabia, Iran and the United Arab Emirates. The Gulf in particular has large amounts of oil and natural gas.
