Oil price band of comfort is precariously narrow 10 May 2012 It only takes a $20-a-barrel swing to move markets from fretting about the release of emergency reserves to worrying about top producers falling into fiscal deficits. Hard-to-cut higher spending by a growing number of big exporters may make the concerns permanent.
Saudis wouldn’t gain much from a union with Bahrain 1 May 2012 The house of Saud’s call for Gulf states to move beyond cooperation and combine into a single entity lays the ground for forming a union with the troubled island. Yet Saudi already bankrolls Bahrain and underwrites its security. The benefits of further integration are dubious.
Saudi words won’t ease pressure on U.S. fuel prices 21 Mar 2012 Despite its reassurances, Saudi Arabia has imperfect options to prevent U.S. fuel prices from reaching risky levels seven months before the presidential elections. Sanctions on Iran, meanwhile, allow Riyadh to benefit from both strong oil prices and high production.
Crude reasons support Saudi stocks 20 Mar 2012 Foreign investors are sweet on Saudi. Growing excitement over a mooted easing of ownership restrictions led overseas buyers to make record net purchases in the $400 bln stock market last month. But in a market known to disappoint, it’s worth paying close attention to the risks.
Goldman’s first Islamic foray too clever by half 9 Jan 2012 Sharia scholars have blessed the Wall Street bank’s unusual $2 bln bond. But that approval falls away if the bonds change hands at anything other than par, and that deters potential investors. Given the inevitable scrutiny, Goldman should have been less ambitious.
Alwaleed pushes the limits with edgy Twitter stake 19 Dec 2011 Even though Prince Alwaleed bin Talal is known as a bold investor, his $300 mln stake in the regime-usurping social network is decisively edgy. The Saudi royal family member increases his cool factor, but supporting unregulated speech might not sit well in the kingdom.
Saudi ripe for Chinese-style stock market opening 2 Nov 2011 Improved access to the kingdom’s bourse is an emerging market investor’s dream. The move, touted for early next year, isn’t without risks. But letting in qualified outsiders would line domestic pockets and aid efforts to expand the private sector.
Gulf liberal shift is more than sop to Arab Spring 26 Sep 2011 Saudi is giving women the right to vote. It follows the UAE’s decision to expand the electoral roll for its recent elections. These cautious democratic steps will help insure stability. But they’re also crucial for introducing the taxes required to reduce dependence on oil.
Oil price jitters turn up heat on Gulf producers 22 Sep 2011 Governments are sweating as Brent creeps lower with worsening global economics. At $108 a barrel, oil is $18 above the threshold at which producers feel real pain. But shrinking oil revenues leave less room for manoeuvre. And any OPEC supply squeeze will complicate the problem.