On the sidelines of the Conference on global commodity in Dubai
Experts estimated that world oil prices to range this year between 39 to 50 dollars a barrel, amid Tvaalat recovery soon will witness the World Item trading the first movement in the markets around the world, the expectation that the fluctuations prevail over the landscape of the world market of goods between the ups and downs until the end of the year.
Experts estimate came during a meeting expectations of energy prices on the global commodity business conference agenda yesterday at its third session in Dubai, in the presence and participation of about 400 delegates discussed the major challenges facing the sector, along with possible strategic opportunities during the current year.
In turn, Mohammed Al Hashimi, Chairman of the Emirates Association for traders in the financial markets, said that the use of the Gulf Cooperation Council (GCC) to enhance the revenue of non-oil either through the expansion of the fundamental measures such as privatization and rationalization of government spending, and the liberalization of fuel prices and water alleviated declines global oil prices.
He explained that the UAE is relatively immune about price volatility in oil prices around the world, pointing out that the state has succeeded in its policy of diversification of economic resources, as well as demonstrate its strength to the financial situation, which is favored by most of the Gulf economies, especially that they have come to rely on oil revenues account for less than 30% of their gross national income.
Hashemi and predicted that the wave of volatility will continue in the oil prices and the global markets in the short term, estimating that the black gold prices to range with the end of the year between $ 40 and $ 50 a barrel.
He said that linking GCC currencies to the US dollar is a positive factor as it provides relative stability, economic growth and inflation, especially in light of fluctuations in international exchange rates of currencies, adding that the move Gulf economies to diversify their resources approach, especially in terms of exports, enabling it to take advantage of the system a more flexible exchange rate.
Rule out that the drop in oil leads to sharp contractions in the dirham exchange rate against the rest of the world currencies during the current year, especially since the price of DRAM rose against most world currencies on the back of a stronger dollar.
For his part, Parrish Kotecha, president and general manager Richemont company Global Services, the Conference considered the opportunity to meet with the commodities sector experts from around the world and exchange views and ideas on dealing with the new challenges posed to the world market goods, especially after large declines realized on oil prices, saying that the way optimal in dealing with such challenges lies in the accurate knowledge of the potential risks associated with the management of trade in goods in the world, in order to avoid the expected negative impacts or mitigate them as much as possible.
A global phenomenon
Kotecha said the declines recorded by commodity prices around the world is a global phenomenon long impact all markets around the world, pointing out that it can not be considered a phenomenon specific to a particular area or territory without the other.
Participated in the conference speakers are key and experts from different continents of the world, such as Becky Chile, Deputy Minister of Agriculture, Forestry and Fisheries of the Republic of South Africa; and Omar Khan, director of overseas offices in Dubai Chamber of Commerce and Industry; and Anurag Bhushan, Consul General of the Republic of India; India Alaouhh, Director of the Department trade policy at the Ministry of economy state; and Gautam Sahital, CEO of the Center for DMCC.
For his part, wondered in Gautam Sahital, in his opening remarks about whether «the giant commodities session» just a myth or not, pointing to the need to constantly adapt in the commodities market, where demand is growing, even though it's a modest pace, with growth in the number of the world's population .
He explained that the projections indicate growth in world trade by 3? During 2016, which means the continuation of demand for goods, noting that the delivery mechanisms of change and evolve in line with progress made digital domain, commonly known as «the Industrial Revolution fourth», which means that the structures of the current market will need to adapt to the business environment in the future.
He reviewed «outlook for the energy sector» session forecasts on Brent crude price levels and WTI during the current world, as well as the potential expectations about the possibility of price hikes in the sector.
And it highlighted the expectations of «agricultural sector session» light on how the impact of El Nino on agricultural crops, experts discussed whether it would be expected to have this year is a year of transition for the world's major agricultural commodities.
It touched Conference global commodities in 2016 at its current session to discuss five main topics are the macroeconomic trends, and forecasts on energy, agriculture, minerals cheap and precious metals, and saw the hearings discussions and exchange of views and opinions between specialists, who addressed the risks and market trends and the potential of the growing global market for the sector.