### Summary
Saudi Arabia's stock market ended higher on Sunday due to the rise in oil prices, although gains were limited as investors awaited further interest rate insight from the U.S. Federal Reserve.
### Facts
- 📈 Saudi Arabia's benchmark index gained 0.4%.
- 🚀 Petrochemical maker Saudi Basic Industries Corp rose 1.7%.
- 💹 Riyad Bank increased by 1.8%.
- ⛽️ Oil prices rose about 1% following a slump in U.S. crude production, leading to an anticipated supply tightness.
- 👥 Qatar's index edged 0.1% higher, boosted by a 1.3% gain in Commercial Bank.
- 📰 Investors will scrutinize a speech from Fed Chair Jerome Powell on Friday for clues about the interest rate outlook.
- 💱 Gulf countries tend to follow the Fed's rate move as most regional currencies are pegged to the U.S. dollar.
- 🇰🇼 Only the Kuwaiti dinar is pegged to a currency basket that includes the dollar.
- 📈 Egypt's blue-chip index added 0.4%, with tobacco monopoly Easter Company advancing 2.9%.
Oil prices rise as global supply tightens due to lower exports from Saudi Arabia and Russia, offsetting concerns about global demand growth amid high interest rates.
Oil prices rose in Asian trade, despite a disappointing interest rate cut from China, due to the prospect of tighter supplies supporting the outlook.
Saudi Arabia's stock market ended higher due to an increase in oil prices, but gains were limited as investors awaited further interest rate insight from the U.S. Federal Reserve.
Oil prices dipped in early Asian trade due to weak manufacturing data in major economies and concerns about the duration of interest rates staying at current levels, despite a larger-than-expected drop in U.S. crude stocks.
Weak manufacturing data in major economies led to a decrease in oil prices, despite a larger-than-expected drop in U.S. crude stocks, while market focus is on Federal Reserve Chair Jerome Powell's speech on interest rate outlook, and Iran's oil output is predicted to increase despite U.S. sanctions.
Gulf stock markets have a mixed performance as higher oil prices are offset by concerns over potential interest rate hikes by the US Federal Reserve.
Most stock markets in the Gulf ended lower due to a slightly hawkish outlook from the US Federal Reserve, with Abu Dhabi, Qatar, and Saudi Arabia experiencing declines.
Saudi Arabia experienced a sharp decline in its foreign reserves, with a drop of over $16 billion last month, marking the largest decrease since the negative oil prices during the pandemic as the country invested in US stocks using its savings.
Crude oil prices rose after the U.S. Energy Information Administration reported a larger-than-expected inventory decline of 10.6 million barrels for the week ending August 25.
U.S. crude oil stocks have reached their lowest level this year and are expected to decrease further, leading to a tight crude oil market and a potential increase in global oil prices.
Oil prices rose to their highest level in over six months due to expectations of tightening supplies, with Saudi Arabia expected to extend its voluntary oil production cut and Russia agreeing to cut oil exports next month.
Most stock markets in the Gulf ended lower as investors grew cautious due to volatile oil prices and awaited monetary policy decisions by the US Federal Reserve.
Oil prices jumped over 2.5% after OPEC+ members extended supply reductions, with Brent International topping $90 per barrel and West Texas Intermediate hovering above $87 per barrel, as Saudi Arabia announced an extension of its production cut and Russia reduced its exports. Despite slow recovery and increased production, crude futures have rallied more than 25% since late June, with experts predicting prices to continue rising unless a recession occurs. China's demand for petrochemicals has been dampened, but their mobility demand post-lockdowns has offset this.
Oil prices reached a new high for the year after Saudi Arabia and Russia agreed to extend output cuts, reinforcing efforts to support oil prices by the OPEC+ alliance.
Stocks fall as higher oil prices and rising Treasury yields put pressure on the market, while Arm prepares for its IPO with a valuation of up to $52 billion and Saudi Arabia and Russia extend their oil production cuts, causing concerns about inflation and raising Treasury yields.
Summary: Rising oil prices and increasing gas prices, driven by the Russian-Saudi agreement to extend oil production cuts, are contributing to inflation concerns and putting pressure on the markets, leading to potential gains for oil stocks like ConocoPhillips and Chevron.
Analysts predict that Saudi Arabia may face an economic contraction in 2023 due to its decision to extend crude production cuts, highlighting the nation's heavy reliance on oil, while a large dividend from Saudi Aramco may provide some cushion for public finances.
The price of oil is surging as Saudi Arabia and Russia cut output, creating a supply deficit that is driving up prices and threatening a fragile global economy with inflation and potential interest rate hikes.
The extension of voluntary oil production cuts by Saudi Arabia and Russia has caused oil prices to surge above $90 a barrel, threatening an inflationary spike that could disrupt central banks' plans to wind down interest-rate hikes, particularly for the Bank of Canada.
Global markets ended higher as energy stocks climbed supported by Saudi Arabia and Russia's decision to extend supply cuts, while Wall Street's key indexes saw weekly declines due to investor concerns over interest rates and anticipation of upcoming U.S. inflation data. In Asian markets, Japan's Nikkei 225 ended down, Australia's S&P/ASX 200 was up, and Chinese shares rose following improved data on consumer price inflation. The Eurozone's economic growth outlook has been downgraded by the European Commission, and crude oil prices fell.
The Dow Jones Industrial Average rose after the Labor Department's CPI inflation report, and oil prices hit a new high for 2023.
European markets were stagnant as investors awaited a decision from the European Central Bank on whether to raise interest rates for the tenth consecutive meeting, while carmaker shares dropped following an investigation into electric vehicle subsidies by the European Commission and concerns over Chinese retaliation. Additionally, the oil market is keeping a close eye on the possibility of crude prices reaching $100 a barrel as Saudi Arabia and Russia plan to extend production cuts until the end of 2023.
Most stock markets in the Gulf ended lower on Sunday due to profit-taking, except for the Egyptian index which reached a record high. Saudi Arabia's benchmark index dropped, highlighting the risk of economic contraction for the kingdom, while Egypt's blue-chip index gained, led by Beltone Financial Holding. UAE's Global Investment Holding also agreed to buy a stake in Egypt's main tobacco products maker.
Oil prices continue to rise as OPEC+ supply cuts tighten the market, with Brent crude surpassing $94 a barrel and speculators increasing bullish wagers on Brent and West Texas Intermediate, leading to concerns about inflationary pressures.
Gasoline prices are rising due to oil supply cuts in Saudi Arabia and Russia, as well as flooding in Libya, but some experts believe that increasing oil prices will not have a significant impact on the US economy and do not expect them to rise much higher in the next year or two due to factors such as increased US oil production, slow global economic growth, and the green energy transition. However, high oil prices can lead to higher inflation, potential recession, and could influence the Federal Reserve to raise interest rates, but the impact may not be as severe as in the past, and some experts recommend investing in the energy transition and adopting a more defensive investment strategy.
Oil prices rose for a fourth consecutive session due to concerns about a supply deficit caused by weak U.S. shale output and extended production cuts by Saudi Arabia and Russia.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, stated that the decision to extend crude oil supply cuts with Russia is not about raising prices, but rather about making the right decision at the appropriate time based on data and clarity, as oil prices near $100 per barrel and analysts predict further increases.
World markets are cautious ahead of central bank decisions and concerned about inflation signals amidst rising oil prices, as crude oil reaches its highest levels of the year due to supply cuts from Saudi Arabia and Russia, while US production also falls.
Stock indices are in the red as oil prices continue to rise, with Chevron's CEO predicting prices could reach $100 per barrel due to reduced US shale oil output and OPEC's supply cuts, while the US Federal Reserve is holding off on easing liquidity until there is a significant reduction in wages to counterbalance a current yearly wage increase of 4.3% and maintain a 2% inflation rate.
Treasury yields rise and stocks fall as traders anticipate longer-lasting higher rates to prevent inflation, while Brent oil briefly surpasses $95 a barrel; the Federal Reserve's decision on interest rates is eagerly awaited by investors.
Crude oil prices rose as inventories declined and demand from Asia and Europe decreased, threatening higher gas prices in the US and potentially impacting the Federal Reserve's interest rate decisions.
Oil prices have risen due to Saudi Arabia's decision to cut back oil production, which has led to higher gasoline and diesel prices, complicating the global fight against inflation and benefiting Russia's economy.
Oil prices rose on Tuesday amid tight supplies and speculation over what $100 oil could do to the economy, with JPMorgan economists projecting a potential impact on global GDP growth if prices remain elevated.
U.S. futures are trending higher after a dismal performance on stock indices, with oil futures also increasing and treasury yields hovering around 4.50%, while in Asia-Pacific markets, most indices ended higher due to positive economic data.
Oil prices rose by about 3% after U.S. crude stocks fell more than expected, causing concerns about supply tightness amid OPEC+ production cuts.
Rising oil prices, driven by production cuts from Saudi Arabia and Russia, could have long-term economic repercussions, particularly in developing countries.
The secretary general of Opec+ predicts that oil prices will remain high due to increasing energy demand, as Saudi Arabia cuts its crude oil production by a million barrels a day and warns of a potential supply shortfall.
Saudi Arabia and Russia have confirmed that they will maintain their oil supply cuts in November, despite the recent rise in oil prices.
Stocks slip as U.S. crude futures drop and mortgage rates climb, while investors await payroll data for signs of a slowing job market; electric vehicle stocks like Rivian and Lucid are making moves, and the U.S. Dollar Index rises for its 12th consecutive week. European stocks close mixed, and utilities stocks see their worst year in over a decade due to higher bond yields.
Asian shares rise as oil prices decline, easing inflationary pressures and boosting market sentiment, with benchmarks in Tokyo, Sydney, Seoul, and Hong Kong all advancing.
Saudi Aramco, the world's largest oil exporter, has raised the price of its crude oil for November, with substantial increases for Europe and the Mediterranean markets.
Oil prices are falling, providing some relief to the bond blowup caused by rising interest rates, but the direction of markets will be determined by the upcoming U.S. employment report.
Despite a 4% spike in oil prices caused by the Israel-Hamas war, U.S. stocks rose on Monday, signaling investor confidence.
