Monthly Insights - June

Halfway through 2023, signs of an economic slowdown are becoming more pronounced across major economies. But while activity looks to be slowing, inflation remains a challenge and central banks across the US, Eurozone and UK are all signalling that more tightening may still be needed in the months ahead.

Major economies of the GCC are showing some resilience in the face of slower global activity with the non-oil sectors of the UAE and Saudi Arabia set to report strong levels of growth. OPEC+ has extended their production cuts until the end of 2024, meaning that the oil sector will remain a drag on growth.

Even as OPEC+ extends its management of oil markets, prices have failed to respond to an imminent tightening oil market balances. We now project oil prices on a shallower path to the end of the year.

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