Russia's Ukraine invasion and the Middle East

Examining the short-term and medium-term economic impact of the Ukraine invasion on the Middle East region, especially in oil production.

Explainer Video Published 3 May 2022 2 minute watch

Russia's Ukraine invasion and the Middle East

— Examining the short-term and medium-term economic impact of the Ukraine invasion on the Middle East region, especially in oil production.

Dr John Sfakianakis explains that, although in the short-term the macroeconomic outlook is good for the Gulf countries due to higher oil prices and better revenues, in the medium-term, if the Ukraine invasion continues and is a trigger for a global recession, this could destroy demand.

He says the break-even for the entire Gulf on oil prices is around $65-70 a barrel and a global economic recession will likely push prices below that mark.