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November 9, 2021

The International Monetary Fund expects the foreign reserves of the six oil-rich Arab countries of the Gulf Cooperation Council (GCC) to increase by $300-$350 billion in the next three years, a senior official said on Tuesday.

The GCC - which comprises Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman - "will benefit from the increase in oil prices", Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, commented. Oil prices have risen about 60% from the start of the year as global demand recovers from the coronavirus pandemic.

Analyst View
The profitability for the producers of ground transportation fuels such as diesel and gasoline have rebounded globally for the first time since the start of the pandemic, as countries gradually emerge from COVID-19 movement restrictions. The scarcity of coal and natural gas across Europe and Asia has put more pressure on the demand for power generators to burn kerosene, diesel, or fuel oil and also influenced stock up ahead of the peak winter heating demand, all these supports increasing global oil.