Saudi Aramco ex­tends de­cline as oil sinks fur­ther

Muscat Daily - - BUSINESS -

Dubai, UAE - Saudi Aramco shares dropped for a fourth day on Sun­day, edg­ing closer to the price they were listed at in De­cem­ber as the coro­n­avirus re­duces de­mand for oil.

The gi­ant oil pro­ducer lost as much as 1.8 per cent and was among the main con­trib­u­tors to the de­cline of the Tadawul All Shares In­dex in Riyadh.

“Aramco has di­rect implicatio­ns with Chi­nese oil de­mand, both in price and vol­ume terms,” said Vra­jesh Bhan­dari, the se­nior port­fo­lio man­ager at Al Mal Cap­i­tal in Dubai.

The shares have still per­formed well rel­a­tive to crude prices, he said. While Brent has slumped 17 per cent this year, Aramco is down 6.2 per cent.

Oil de­clined for the fifth straight week last week, with

Rus­sia yet to back Saudi Ara­bian calls for OPEC+ to cut pro­duc­tion. In­vestors also re­acted neg­a­tively to the US Fed­eral Re­serve say­ing the virus posed a threat to global mar­kets.

Saudi Ara­bia’s non-oil growth rate in the third quar­ter was the high­est in five years and mo­men­tum con­tin­ued in the fourth quar­ter, said Bloomberg Eco­nomic’s Ziad Daoud.

Still, he said, ‘two head­winds could de­rail this re­cov­ery: Pub­lic spend­ing cuts, and a re­duc­tion to oil out­put in re­sponse to the spread of the coro­n­avirus’.

Saudi Ar­bia’s Tadawul All Share In­dex dropped 1.1 per cent in Riyadh, the most in the Gulf.

Elsewhere in the re­gion, bench­marks in Dubai, Kuwait and Qatar fell as much as 0.5 per cent, while those in Abu Dhabi, Bahrain and Egypt climb as much as 0.1 per cent.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.