IMF chief praises GCC for managing oil prices

07 October 2012

Christine Lagarde says Gulf played stabilising role in global economic recovery

Managing director of the International Monetary Fund (IMF) Christine Lagarde has praised GCC governments for helping to stabilise the global economy by managing crude exports.

Lagarde was speaking at a press conference in Riyadh on 6 October after meeting the leaders of the six-nation bloc, which includes significant Opec exporters Kuwait, Saudi Arabia and the UAE.

“It gives me an opportunity to thank the GCC countries for their… stabilising role in the global economy because of the good monitoring and good management of oil prices,” Lagarde said, according to a Reuters report.

The Opec Basket Price was at $106.99 a barrel on 4 October. The price crossed the $100 a barrel mark on 17 July, peaking at $114.87 on 14 September and has stabilised over recent weeks in a range of $100-110.

In August, crude production from the GCC largest three producers reportedly rose 400,000 barrels a day (b/d) as declines in Saudi Arabia and the UAE were offset by a sharp rise in Kuwaiti output.

At the same press conference, the IMF head said the GCC had provided a stabilising role for “neighbouring Arab countries in transition”, referencing the leadership changes in several Middle Eastern since the start of 2011.

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