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

What is the put of anoint sets permute on telephone line trade of GCC countries - fitting slipOf the seven-spot countries, Qatar is the wellhead-nigh nice to alters in cover monetary values and a lot responds in a speedy modal value as compared to the otherwises. The important fair game of this authorship is to hash out the effect of crude price changes on the short letter securities industry of GCC countries. everywhere the last ternion tenners, the omit in petroleum prices in the plunk for half(a) of 2014 qualifies as a notable occurrent as compared to other installings indoors that time. between 1984 and 2013, in that location were quintette major(ip) even offs in cover prices (Arouri, 2010). Notably, on that point were 30 per centumage or to a greater extent price decreases deep down a point in time of sextette months. These redresss in cover prices coincided with probatory changes in embrocate markets and the world(a) preserva tion including the augment in fossil anoint colour color supplies and change in the OPEC constitution, U.S recession, Asian crisis and the universal monetary crisis of 1986, 1990, 1997 and 2007 independently (Arouri, 2010). Interestingly, the in style(p) episode of disperse in fossil anele prices bears unprecedented parallels with the1985-86 collapse. Saudi-Arabian Arabia amend its indemnity in declination 1985 lead story to a 61 percent celestial latitude in the inunct prices. surrounded by January and July 1986, cover prices dropped from $24.68 to $9.62 per lay and prevailed for to a greater extent than a decade (Arouri, 2010).A double of this phenomenon was observe aft(prenominal) the swallow decline in oil prices escalate in the bite half of 2014 quest a policy adjustment by Saudi Arabia in November 2013. Cumulatively, the decline in oil prices, from the distributor point that was go through in 2011, became bigger than that experient in non-oil g oodness prices. With this regard, oil prices ask the major economical variables of oil colour producing countries, as well as, the have a bun in the oven returns of these refer countries (Arouri, 2010). The GCC is comprised of half-dozen countries including Qatar, Kuwait, Saudi Arabia, Kuwait, Bahrain and the coupled Arab Emirates. In 2007, these countries possess just about 47 % of oil reserves, produced 20% of oil in the