Spending cuts not the solution to region's low revenues

Spending cuts are not the solution to dealing with oil exporting countries’ low revenues. This comes from the Arab Petroleum Investments Corporation (APICORP) Energy Forum in Bahrain where only 16% of energy and financial sector experts believe spending cuts would overcome the current squeeze on government revenues. Some 45% of the delegates stated diversification and 34% said subsidy reforms would be the answer. It was also revealed that 91% believed Brent oil price will remain below $70 (AED 257) for the coming 12 months, while only 1% predicted that the price per barrel would exceed $100 by this time next year.