Strategy Note / Global

Saudi and GCC: Recent oil price drop is a risk for equities (in one chart)

  • GCC equities (MSCI GCC) broadly tracked the 10% increase in oil price over July and August 2020
  • Oil price has dropped 10% since the start of September but GCC equities are flat, implying higher risk near-term...
  • ...given fiscal break-even oil prices range from half more to double the current oil price (except for Qatar)
Saudi and GCC: Recent oil price drop is a risk for equities (in one chart)

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