Arab News, Saturday, Sep 12, 2020 | Muharram 24, 1442
Saudi energy think tank develops oil shock analysis model
Saudi Arabia: A Saudi energy think tank has devised an
analytical model which examines how oil price shocks affect individual
countries.
The King Abdullah Petroleum Studies and Research Center (KAPSARC) developed the
tool which covers 36 countries and incorporates oil industry data going all the
way back to 1979.
It comes amid fierce volatility across energy markets this year as oil demand is
buffeted by the impact of the coronavirus pandemic.
Among the countries studied were 12 major oil producers that collectively
account for two-thirds of global crude oil output, and hold approximately 65
percent of proven oil reserves. The list includes five of the world’s top six
producers: Saudi Arabia, the US, Russia, Canada and China.
It stressed the importance of establishing sovereign wealth funds in oil
exporting countries that can absorb economic shocks, thereby dampening the
impact on the wider economy and reducing the potential for system-wide
disruption.