Nobody downloaded yet

What is the effect of oil prices change on stock market of GCC countries - Assignment Example

Comments (0) Cite this document
Summary
The complications of the supply and demand for oil in association with the activities of the producers lead to changes in the global economy. The GCC countries remain to be the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
What is the effect of oil prices change on stock market of GCC countries
Read TextPreview

Extract of sample
"What is the effect of oil prices change on stock market of GCC countries"

Download file to see previous pages Of the seven countries, Qatar is the most sensitive to changes in oil prices and often responds in a quicker manner as compared to the others. The main objective of this paper is to discuss the effects of oil price changes on the Stock market of GCC countries.
Over the last three decades, the drop in oil prices in the second half of 2014 qualifies as a noteworthy occurrence as compared to other episodes within that time. Between 1984 and 2013, there were five major declines in oil prices (Arouri, 2010). Notably, there were 30 percent or more price decreases within a period of six months. These declines in oil prices coincided with significant changes in oil markets and the global economy including; the increase in oil supplies and change in the OPEC policy, U.S recession, Asian crisis and the worldwide financial crisis of 1986, 1990, 1997 and 2007 respectively (Arouri, 2010). Interestingly, the latest episode of collapse in oil prices bears remarkable parallels with the1985-86 collapse. Saudi Arabia amended its policy in December 1985 leading to a 61 percent decline in the oil prices. Between January and July 1986, oil prices dropped from $24.68 to $9.62 per barrel and prevailed for more than a decade (Arouri, 2010).
A repeat of this phenomenon was observed after the steep decline in oil prices intensified in the second half of 2014 following a policy alteration by Saudi Arabia in November 2013. Cumulatively, the decline in oil prices, from the peak that was experienced in 2011, became larger than that experienced in non-oil commodity prices. With this regard, oil prices affect the major economic variables of Oil producing countries, as well as, the stock returns of these involved countries (Arouri, 2010). The GCC is comprised of six countries including Qatar, Kuwait, Saudi Arabia, Kuwait, Bahrain and the United Arab Emirates. In 2007, these countries possessed about 47 % of oil reserves, produced 20% of oil in the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What is the effect of oil prices change on stock market of GCC Assignment”, n.d.)
What is the effect of oil prices change on stock market of GCC Assignment. Retrieved from https://studentshare.org/finance-accounting/1685786-what-is-the-effect-of-oil-prices-change-on-stock-market-of-gcc-countries
(What Is the Effect of Oil Prices Change on Stock Market of GCC Assignment)
What Is the Effect of Oil Prices Change on Stock Market of GCC Assignment. https://studentshare.org/finance-accounting/1685786-what-is-the-effect-of-oil-prices-change-on-stock-market-of-gcc-countries.
“What Is the Effect of Oil Prices Change on Stock Market of GCC Assignment”, n.d. https://studentshare.org/finance-accounting/1685786-what-is-the-effect-of-oil-prices-change-on-stock-market-of-gcc-countries.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Oil And Food Commodities Prices. Oil prices effect on agricultural commodity prices in Latin American Nations
...that shortage and soaring prices of oil is perpetual. This effect of unending high fuel price has triggered a detrimental effect on majority of lives in Latin America and the rest of the globe since most country’s economic developments are fuel-dependent notably food security. A decline in global demand for oil as a result of a sharp decrease in world’s economic activity can cause oil prices to reduce as in the case of what took place in 2008. However much this is possible, most farmers from Latin America still are still not able to afford fuel prices, limiting their...
18 Pages(4500 words)Term Paper
Oil prices and its effect on the global market
...the price level higher. Once the concept of demand and supply and their effects on the market price is clear, we will now concentrate on just changes in oil prices and their resulting effects. Crude oil is such a vital input in many industries, it is more like a necessity or basic good for everyone (heating, cooking, burning purposes), thus creating an identifiable link between the demand for oil and the pace of economic growth globally. Economic growth occurs when the GDP of any country increases compared to the GDP of last year. When an economy is...
11 Pages(2750 words)Term Paper
Stock Market Prices - Web Based App
...Stock market prices-web based app Introduction Investor access to detailed market real time quotes enhances market efficiency and price discovery, and known to be a necessity and of substantial benefit to many investors and shareholders alike. In order to access the real time quotes, an individual needs to subscribe to the Real –Time quotes services, which the bourse provides free to investors by several companies. On global exchanges, the growth in electronic trading volumes has been on the increase. market data feeds generates tens of thousands of messages in one second. Latency of one second in the electronic trading...
7 Pages(1750 words)Coursework
Effect of Oil Price on Kuwait Stock Market Index
...Effect of Oil Price on Kuwait Stock Market Index Abstract This proposal is an attempt to assess the possibility of effects of oil prices on the stock market index and it intends to establish all the links between the two values. The research will establish the different causes of rise or drop of the stock market index in Kuwait and relate the findings with the oil prices at different particular situations. The research will assess the various issues that determine the direct effect of...
8 Pages(2000 words)Dissertation
Oil Prices
...with creditable monetary policies that have anchored longer-term inflation expectations, these improvements have allowed containing inflationary pressures caused by the higher oil prices without excessively dampening. However, the simulations do not account for possible business and consumer confidence affects or capital market disruptions, including difficulties in financing individual countries' current account shortfalls. Persistent Productivity Shocks with Low Oil Ability Macro-economic responses are different in an in which demand shock has boosted oil prices. Consider an of low spare oil production...
8 Pages(2000 words)Essay
Stock Prices Change And Earnings Changes
...http highered.mcgraw-hill.com/sites/007253317x _view0/chapter12/chapter_ s.html Three questions in total. Each question needs about 500-word answer. 1) Do stock prices change in response to unexpected earnings changes? 2) How do stock prices reflect fundamental signals? What is the incremental value-relevance of fundamental signals over earnings? 3) How is accounting information used by the market in the valuation of internet firms? Stock prices fail to reflect fully the implications of unexpected earnings changes. The stock prices fail to reflect the extent to which the time-series behavior of earnings deviates from a naive expectation: a seasonal random walk, where expected earnings are simply earnings for the corre... No. 2 Autumn...
10 Pages(2500 words)Essay
The effect of inflation on stock prices
...Effect of Inflation on Stock Prices Introduction Inflation is defined as a general and progressive increase in prices and it does have a relationshipwith the stock prices in the ever changing market scenario which is affected by the numerous economic, political and social events around the world. ‘Too much money chasing too few goods’ is another classic definition of inflation (Little, Ken) and the remedy is to remove excess capital from the market by increasing short term interest rates thereby making money ‘more expensive to borrow’ (Little, Ken). However the relationship between...
3 Pages(750 words)Essay
The effect of Oil prices on the performance of stock markets of the GCC countries
...market activity. Impacts of Oil Price Movements on Qatar and Other GCC Stock Markets Past studies indicate that there is a possible link between changes in oil prices and stock prices. However, the concentration of the studies is in developed economies their analysis focuses on the impact oil price shocks have on stock returns. To determine the link, there should be an assessment of the changes in the prices of crude oil and the effects...
3 Pages(750 words)Assignment
How change in oil prices affect the stock market of GCC prices
...by the world’s best economists. Table of Contents Cover page 1 Executive Summary 2 Introduction 3 GCC Stock Markets 3 Qatar Exchange in Relation to the World 4 Recommendations 4 Conclusion 5 References 6 Introduction The abrupt fall in oil prices has a varied effect on the world economies. Most of the oil producers will face economic recessions, and the value of their currencies will depreciate, owing the reduction in the purchasing power. Major oil producers will lose their funds, owing to the abrupt decrease in value of...
3 Pages(750 words)Assignment
Effect Of Oil Price Change
...Effect Of Oil Price Change The demand and supply framework in oil price changeOil is an example of a normal good in the economy. Its price change forms part of one of the biggest topic when it comes to matters of international economy. It is a challenge to forecast commodity prices such as that of oil but the demand and supply framework comes handy in such situations. Every market has a demand and supply mechanisms that set its prices. The oil market is a dominant...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Assignment on topic What is the effect of oil prices change on stock market of GCC countries for FREE!
Contact Us