DUBAI - The recovery in oil prices will help Gulf Arab oil exporters emerge from the economic downturn, enabling them to keep fiscal stimulus in place for a longer period than administrations in other parts of the world.
Saudi Arabia, the world's top oil exporter, and its five neighbors rely heavily on oil and gas revenues.
Gulf Arab states have been on a fiscal expansion scheme since 2002 to diversify their economies and as a result, the oil price needed to keep budgets in check has risen substantially.
Following are some of the possible scenarios for the region based on where oil prices go. A Reuters poll showed last month that U.S. crude is likely to average $75 a barrel next year after $61.50 in 2009.
The price of U.S. crude oil collapsed to $32 a barrel last December from peaks at $147 in July, 2008. Crude currently trades around $72.
Saudi Arabia, the world's top oil exporter, and its five neighbors rely heavily on oil and gas revenues.
Gulf Arab states have been on a fiscal expansion scheme since 2002 to diversify their economies and as a result, the oil price needed to keep budgets in check has risen substantially.
Following are some of the possible scenarios for the region based on where oil prices go. A Reuters poll showed last month that U.S. crude is likely to average $75 a barrel next year after $61.50 in 2009.
The price of U.S. crude oil collapsed to $32 a barrel last December from peaks at $147 in July, 2008. Crude currently trades around $72.
