OPEC In Deep Doo-Doo -- July 20, 2017

Deep doo-doo: three years into cheap oil, OPEC is still hoping for a rebound.

The six members of the Gulf Cooperation Council have curtailed subsidies and introduced new taxes to bolster non-oil revenue and reduce ballooning budget deficits.

Much of the savings, however, have been due to spending cuts and the pace of reforms has slowed across the region, said Monica Malik, chief economist at Abu Dhabi Commercial Bank. Overall progress in economic diversification has been limited, she said. [I guess that's why they call it the blues.]

Absent a rebound in oil prices, analysts say it’s unlikely that these nations can repair their finances without deeper spending cuts that could further hurt growth. The standoff between a Saudi-led bloc and Qatar is also undermining investor confidence at a time when the GCC is seeking foreign funds.

The linked article has five excellent graphs.  I may need to add a new tag.

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Elton John

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Notes to the Granddaughters

I am deathly afraid of carnival rides. But with the first "love of my life" I remember riding "the rocket" with her. That's the only time in my life I ever rode "the rocket." [No double entendre intended.] You only go through life once; live it to its fullest.

Rocket Man, Elton John