Oil-rich countries are pulling their money out of the City

You don’t have to work in the oil industry to feel the effects of low prices, even money managers are feeling the pain.

Oil-rich Gulf states have been pulling their money from asset management companies faster than ever, according to an FT report.

The sovereign wealth funds of countries such as Saudi Arabia and Kuwait withdrew at least $19 billion (£12.6 billion) in the third quarter of the year.

Aberdeen Asset Management, one of the biggest asset managers in Europe, has also been one of the hardest hit — recording 10 consecutive quarters of outflows.

Aberdeen’s CEO, Martin Gilbert, said: “If the oil price remains low, we will see more redemptions from sovereign wealth funds,” according to the FT’s appropriately-named Attracta Mooney.

Saudi Arabia has withdrawn as much as $70 billion from asset managers this year, the FT said.

Oil, which has more than halved in price since last year to around $40 a barrel, is set to stay cheap.

A meeting of the OPEC nations, a group of oil-rich countries who meet to decide output targets, ended in chaos this week, sending price of oil tumbling.

Here’s what that chart looks like:

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