Gulf looks set to fall after oil tumbles 4 per cent
Gulf stock markets look set to fall on Thursday after oil tumbled about 4 per cent overnight, with Brent crude closing the last session at $48.06 (£37.04) a barrel, its lowest level since early May.
Saudi Arabia’s bourse has been supported in recent days by expectations that MSCI will on June 20 launch a review of whether to upgrade Riyadh to emerging market status. But an oil price below $50 (£38.55) may negate much of that positive factor by weighing on petrochemical shares.
Qatar’s stock market may fall further after the Qatari riyal dropped to an 11-year low against the dollar in the spot market – a sign of capital outflows – and Standard & Poor’s downgraded Qatar’s debt because of the diplomatic rift in the Gulf.