Most stock markets in the Gulf region ended higher on Sunday, following the rise in oil prices on Friday. The Saudi index saw gains for a third consecutive session.
Oil prices, which have a significant impact on the Gulf’s financial markets, increased on Friday after the International Energy Agency predicted record global demand and tightening supplies. This marked the seventh straight week of price gains, the longest such streak since 2022.
According to the Organization of the Petroleum Exporting Countries (OPEC), global oil demand is expected to rise by 2.44 million bpd this year. OPEC also stated that prospects for the oil market in the second half of the year look favorable.
Saudi Arabia’s benchmark index advanced by 1.1%, driven by a 1.6% increase in oil giant Saudi Aramco. Aramco has assured customers in North Asia that they will receive the full volumes of crude oil they requested for September, despite the kingdom’s voluntary output cut extension.
In Qatar, the index added 0.4%, with petrochemical maker Industries Qatar showing a gain of 0.8%.
Outside of the Gulf, Egypt’s blue-chip index finished 0.8% higher. The Egyptian central bank will hold an auction for 600 million euros in one-year euro T-bills on Monday.
Overall, the rise in oil prices has had a positive impact on the Gulf stock markets, leading to gains in several key indices.
