With the decline in oil prices, most Arab markets closed lower

Most Arab Gulf stock markets closed lower on Sunday, affected by the decline in oil prices on Friday, but the Saudi index bucked the downward trend and closed higher.

Oil, a catalyst for financial markets in the Gulf region, fell the day before yesterday, Friday, with the entry into force of the temporary truce between Israel and the Palestinian resistance in the Gaza Strip, as the release of some detainees in Gaza led to a decline in the premium associated with geopolitical risks.

At the end of trading on Sunday, the Qatari index fell 0.7%, affected by a 1.5% drop in Qatar Islamic Bank’s shares and a 1.5% drop in Industries Qatar’s shares.

The Saudi index rose 0.1%, ending losses over two sessions, supported by a 1.2% rise in Elm Company shares.

Outside the Gulf region, Egypt’s leading stock index fell 0.8%, with the share of Commercial International Bank (Egypt’s largest bank) falling 2%.

Sources in the OPEC Plus alliance said that the alliance is close to reaching a compromise with African oil producers regarding production levels for 2024.

Officials said that Angola and Nigeria – both members of the Organization of Petroleum Producing Countries (OPEC) – aim to increase their shares of oil production.

The postponement of the OPEC Plus meeting – which includes OPEC and other allies, including Russia – from November 26 to 30 led to a sharp decline in oil prices.

The market is also waiting to know whether Saudi Arabia will extend the additional voluntary production cut of one million barrels per day and Russia’s by 300 thousand barrels per day, which is scheduled to end at the end of next December.

It is noteworthy that Nigeria and Angola, among several other countries, had their production targets changed at the last OPEC+ meeting last June after failing over the years to achieve the previous targets.

This comes after the two countries accepted production quotas that reflect the decline in their production capabilities in light of the lack of investment and operational disturbances, amounting to 1.28 million barrels per day for Nigeria and 1.38 million for Angola.