If the late 2014 decline in oil prices and subsequent hit to GCC fiscal revenues is any guide to the current oil glut, the signal now to Gulf labor markets is a siren. When oil revenues declined sharply in late 2014, the structural fundamentals were similar to what OPEC+ members thought they saw in early March 2020. They saw declining demand in China and persistent supply from US producers. OPEC, with new partners like Russia and Mexico (the "plus"), responded in late 2016 with production cuts that held prices steady in the range of $50-70 per barrel until the agreement fell apart on March 5.
Read more: https://www.al-monitor.com/pulse/originals/2020/04/gulf-covid19-coronavirus-change-gcc-labor-markets-crisis.html#ixzz6InL0adYj
