Moody’s: Gulf banks pressured by oil

23 Feb 2016   Abu Dhabi, Bahrain, Kuwait

Banks for members of the Gulf Cooperation Council, which includes Saudi Arabia, face pressure from low oil prices despite government support, Moody’s said. Crude oil prices continue to hold near 10-year lows as markets favor the supply side. A rally sparked by talks of a production freeze from members of the Organization of Petroleum Exporting Countries faltered by the end of last week after U.S. data showed oil inventories at historically high levels. Moody’s Investors Service reported Monday the banks for GCC members might get squeezed by dual pressures from low oil prices and dwindling options for governments looking to arrest the slide. “Despite low oil prices and a high dependency on oil revenues […]

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