2023-05-27 10:18:45
local economy
138
Optimism about the recovery of stock markets in conjunction with the results of the “OPEC +” meeting
The US debt ceiling and oil shake the financial markets
Doha – East
Most of the Gulf stock exchanges declined significantly during the week’s trading, affected by the decline in global markets amid the faltering talks on the US debt ceiling, in addition to the drop in oil prices in light of the conflicting positions of the OPEC + coalition on reducing crude production.
Over the course of the week, the main market index in Saudi Arabia, “TASI”, recorded its largest daily loss in more than two months, falling by about 1.4%.
This was affected by the decline in Aramco’s share for the fourth consecutive session, in conjunction with the sharp decline in oil prices.
The Gulf stock exchanges were affected by the drop in the global stock exchanges, after the negotiations over the US debt ceiling faltered, and this affected investor sentiment.
During the week, negotiations on raising the US debt ceiling of $31.4 trillion between US President Joe Biden’s administration and members of Congress from the Republican Party stumbled, prompting Fitch to put the US credit rating under surveillance for a possible downgrade.
In Qatar, the general stock index fell by 1.8%, recording the second consecutive weekly loss.
The first index of the Kuwaiti Stock Exchange decreased by 0.5%, recording the fourth consecutive weekly loss, and in the Sultanate of Oman, the main index of the Stock Exchange fell by 0.2%.
On the level of trading on Thursday, the FTSE index of the Abu Dhabi Stock Exchange recorded its lowest closing in 10 months, under pressure from the decline in major stocks, while the Dubai Financial Market index fell slightly.
It is noteworthy that the Gulf markets were also affected by the drop in oil prices, which ended Thursday’s trading with losses in light of the conflicting positions of the OPEC + coalition on reducing production, as Brent contracts fell by 2.68% to $76.26 a barrel, and US light crude contracts fell by 3.38% to $71.83. per barrel.
Oil prices fell slightly during Friday’s trading, as investors absorbed officials’ statements regarding the “OPEC +” meeting scheduled for next week.
And Russian Deputy Prime Minister “Alexander Novak” stated that “OPEC +” may not change production levels at its next meeting, which will be held in Vienna in June.
US House of Representatives Speaker Kevin McCarthy said Thursday that some progress had been made but many issues remained unresolved regarding debt ceiling negotiations, with a deadline approaching to raise the federal government’s $31.4 trillion borrowing limit or face the risk of a debt default.
Brent crude futures for July delivery fell 0.30%, or 23 cents, at $76.03 a barrel.
US crude futures for June delivery also fell 0.15% to $71.72 a barrel, but they are still up this week by about 0.3%.
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