Cash-rich Gulf states set to ride out oil-price plunge

Kuwait City

ENERGY kingpin Saudi Arabia and other wealthy Gulf states are set to resist pressure to tighten the taps significantly to shore up oil prices as the global economy stumbles, analysts say.

Oil prices have fallen by a quarter since June as excess supply and weaker demand create a glut on world markets, prompting some other exporters to call for cuts in output.

But while curbing production could help to arrest the price decline, it would also leave the Gulf states at risk of losing market share.

Fortunately for the six nations of the Gulf Cooperation Council (GCC) - which sit on 40 per cent of the world's oil and a quarter of its natural gas - they are flush with cash, analysts said.

"The GCC states are in a strong position to remain steadfast for a few years" if there is a dispute over production, Kuwaiti oil analyst Mussa Maarafi sa…