Qatar: Iraq, Peak Oil & GCC growth

Although the occupation of Iraq has added to the “terrorist/instability premium” in the oil price and contributed in a small way to the lack of spare capacity, it is not the main factor for the current oil price and is therefore does not significantly contribute to the GCC’s current economic boom.

The fundamental factor is the remarkable rate of growth in the world’s voracious appetite and demand for oil. Indeed, there is a danger that the situation in Iraq could adversely affect non-oil GCC economic growth.

Empty Wells