Saudi Arabian Shares Drop Fourth Day on Oil Slump; Qatar Gains

Saudi Arabian Shares Drop Fourth Day on Oil Slump; Qatar Gains

Source: Bloomberg

Saudi Arabia will take into consideration the interests of producing and consuming nations as it continues to support stability in international petroleum markets,
Crown Prince Salman bin Abdulaziz Al Saud said at the G-20 Summit in Brisbane, according to the state-run Saudi Press Agency.Shares in Saudi Arabia retreated for a fourth day as some investors speculated that declining oil prices may hurt OPEC’s biggest producer. Qatari stocks advanced.

The Tadawul All Share Index lost 1.3 percent to 9,553.81, the lowest close in a month. Saudi Basic Industries Corp. (SABIC) , among the world’s largest petrochemicals producers, fell 1.6 percent, and Al Rajhi Bank declined 1.7 percent. Qatar’s QE Index added 0.1 percent to 13,744.80.

Oil prices may keep sliding in coming months, mounting pressure on OPEC to reduce production, according to the International Energy Agency . Brent, the benchmark grade for more than half the world’s crude, fell for an eighth week last week, dropping 4.8 percent and trading as low as $76.76 a barrel, a four-year low. Saudi Arabia will need oil to average $99.2 a barrel this year to balance its budget, according to Deutsche Bank AG.

“The dip in oil is being priced in the market quite aggressively, to the point that we might be over-reacting,” Ahmed Shehada, head of advisory and institutions at NBAD Securities LLC in Abu Dhabi, said by phone. “Despite several assurances from government officials that Saudi is okay with cheaper oil, the equities market continues to reflect investors’ apprehension that oil prices can ultimately impact the kingdom’s economy and its spending plans.”

Saudi Arabia will take into consideration the interests of producing and consuming nations as it continues to support stability in international petroleum markets, Crown Prince Salman bin Abdulaziz Al Saud said at the G-20 Summit in Brisbane , according to the state-run Saudi Press Agency.