AMMAN – Saudi Arabia’s stock market closed on a higher index note on Sunday, according to Reuters, in response to Friday’s rise in oil prices, while the Egyptian index was in the red.
Oil prices rose over 2% on Friday after energy firms posted positive earnings and US data showed crude output was declining while fuel demand was growing, Reuters reported on Friday.
Crude oil prices rose 1.5% for Brent futures and 2.7% for current contracts as well as for West Texas Intermediate (WTI) crude, due to rising demand in the United States (US), after dropping 48 cents on the barrel last Thursday.
Brent futures for June delivery rose USD 1.17 (JOD 0.83) on the barrel, to settle at USD 79.54 (JOD 56.45), while the more actively traded July contracts jumped to USD 80.33 (JOD 57.11).
Meanwhile, West Texas Intermediate (WTI) crude rose USD 2.02 (JOD 1.43), or 2.7%, to settle at USD 76.78 (JOD 54.58).
Last week, news about a possible hike in interest rates and concerns about a subsequent slowdown in the US and global markets, drove oil prices down in an unusual occurrence.
Higher interest rates could further boost oil prices, which benefits oil-exporting countries within the GCC, as the US dollar still stands as the primary denomination currency used in the international oil market.
