The UAE stock exchanges closed lower today, Friday, due to the volatility of oil prices, after OPEC Plus producers agreed to voluntary reductions in crude production early next year, and these reductions came below market expectations.
Saudi Arabia, Russia and other members of OPEC Plus – which pump more than 40% of global oil – agreed to voluntary production cuts of about 2.2 million barrels per day in the first quarter of 2024.
Brent crude oil, a major catalyst for financial markets in the Gulf, was trading down 0.3% to $80.6 per barrel during today’s trading, before trimming some of its losses.
At least 1.3 million barrels per day of OPEC Plus cuts come from extending voluntary cuts already implemented by Saudi Arabia and Russia.
The main index of the Abu Dhabi Stock Exchange fell 0.2%, ending a series of gains that lasted 3 sessions, and the Dubai benchmark index closed down 0.1%.
George Pavel, General Manager at Capax.com Middle East, said that the Dubai Stock Exchange is still under some pressure, as caution prevails ahead of a speech by Federal Reserve Chairman Jerome Powell later today that may include indications about the future path of prices. American interest.
While the moderate increase in consumer spending in the United States last October reinforces expectations that the US Federal Reserve has ended the monetary tightening cycle; Michelle Bowman, a member of the US Federal Reserve, said on Tuesday that the Fed will likely have to raise the cost of borrowing further to reduce inflation to the target rate of 2% in a reasonable period.
In the United States of America, the main indices on Wall Street fell at the open on Friday, as investors awaited Jerome Powell.
The Dow Jones Industrial Average fell 0.1% at the opening, the Standard & Poor’s 500 Index opened down 0.18%, while the Nasdaq Composite Index fell 0.32%.
