How change in oil prices affect the stock market of GCC prices Assignment

How smorgasbord in anoint prices affect the stock market of GCC prices - Assignment ExampleThe abrupt fall in oil prices has a vary effect on the conception economies. Most of the oil producers leaveing position economic recessions, and the value of their currencies will depreciate, owing the reduction in the purchasing power. Major oil producers will lose their funds, owing to the abrupt drop-off in value of oil. However, the US and other oil consumers collapse no major worries, and the drop in the prices of oil proves to be a positive movement for advancement of the economy (Mirhaydari, 2014).The history of oil prices encompasses varied changes though this may appear as the major decrease in the 21st century. Before the industrialization and increased dependence on oil, prices were low. However, the increased demand for oil resulted in an increasing value of the crude oil. It has remained this way for a long time until now. Much of the world still depends on oil, though m ajor economies, such as China, USA, and Europe as a continent, give up minimized their consumption, narrowing the market (Stefanova, 2014). The price fall may be attributed to this demand change.The stock markets of GCC will be adversely affected by the decrease in the oil prices worldwide. The reduction in the gross domestic product of these nations will amount to decreased spending, and thus there will be a reduction in the demand for shares and stocks, minimizing the trade occurrence. A stock market crash may be possible since there will be significant effects on the countries economies. The prices of stocks will fall, because of the prevalent low oil prices. crude oil is the largest export in these countries, and thus a reduction in the money in circulation, which limits consumer spending, resulting to poor perform stock markets (Morris, 2015).Oil prices are at their lowest state in the 21st century, resulting in varied effects on the economies of different countries. The US , Europe, and China are some of the