Kuwait Stock Exchange Continues Climb... Oil Held Hostage to De-escalation
Kuwait Stock Exchange rises amid fluctuating oil prices and the impact of geopolitical tensions on global markets
Translated by Qiyas from النهار — Original source
Kuwait’s stock exchange extended its positive performance for a second consecutive session, supported by gains in the previous session, while circulating liquidity approached 90 million dinars. In the energy sector, geopolitical developments and navigation risks returned to the forefront of global markets, with oil prices continuing to fluctuate above elevated levels, alongside diplomatic efforts to contain regional tensions. In the Kuwaiti oil market, moves emerged to relaunch a strategic project valued at $2.5 billion, following the cancellation of its previous tender, as Saudi Aramco, according to a Bloomberg report, nears a $10 billion banking financing agreement. Meanwhile, gold declined amid a stronger US dollar and anticipation of the US Federal Reserve’s interest rate policy.
A $2.5 billion oil project: Middle East magazine reported that Kuwait is holding discussions to relaunch an oil project worth approximately $2.5 billion, after canceling its tender last January, according to sources in the oil sector.
Oil fluctuates... De-escalation eases risk premium: Oil prices oscillated between gains and losses during yesterday’s trading, amid diverging impacts from two key factors: concerns over supply and navigation, and hopes for a political settlement that would ease the intensity of the war and tensions in the Middle East. Brent crude fell by about 57 cents, or 0.49%, to $115.20 per barrel at one stage of trading, before rebounding to around $116.10. US West Texas Intermediate (WTI) crude also dropped by 57 cents, or 0.56%, to $101.20, before recovering its gains and trading near $102.
Aramco nears $10 billion banking financing: Bloomberg reported that Saudi Aramco is close to finalizing an agreement with international banks to secure a $10 billion revolving credit facility, as energy markets face risks linked to regional tensions and disruptions in crude exports.
Regional talks to contain tensions: Saudi Arabia, Turkey, and Pakistan held talks with Iranian officials in Tehran, aiming to de-escalate tensions in the Middle East. Iranian state media reported that the parties agreed to continue discussions to enhance cooperation in the fields of peace and security.
Navigation under pressure... Gulf exports decline: Data compiled by a Washington-based research center showed that October witnessed the highest level of attacks on commercial ships in the Strait of Hormuz and adjacent waterways since monitoring of such incidents began in 2017, according to the cited data. In a research note, ANZ Research indicated that the oil market remains exposed to volatility due to pressures on supplies, logistics, inventories, and refining operations.
The Fed puts pressure on the yellow metal: Markets are awaiting the Federal Reserve’s decision on monetary policy, along with Personal Consumption Expenditures (PCE) data scheduled for release on Thursday, which represents one of the key indicators the central bank relies on to assess inflation and target a 2% rate.
Stock exchange liquidity at 89 million dinars: Kuwait’s stock exchange closed yesterday with its general index rising by 56.43 points, or 0.66%, to reach 8,549.23 points. Trading volume totaled 320.8 million shares across 21,580 cash transactions, with a total value of 88.9 million dinars.
