OPEC members' stock exchanges jump as oil prices rise
Business |
In the past three weeks, oil prices have risen gradually after having decreased more than 60 percent since June.
The sudden increase in oil prices has positively affected the stock exchanges of Organization of the Petroleum Exporting Countries, or OPEC.
In the past three weeks, oil prices have risen gradually after having decreased more than 60 percent since June, dipping below $46 per barrel on Jan. 13 -- the lowest point for the price of oil since March 2009.
"Rising oil prices since the last days of January has created a positive atmosphere for stock exchange of the countries whose revenues are highly dependent on oil sales," Ridvan Basturk, a research analyst at Istanbul-based ALB Securities, told The Anadolu Agency.
The price of global benchmark Brent crude oil climbed 28 percent since Jan. 13, almost reaching $59 per barrel Tuesday.
Meanwhile, the American benchmark West Texas Intermediate increased 18 percent, climbing above $54 per barrel Tuesday, amid weak U.S. oil rigs data and production losses.
Furthermore, between Jan. 29 and Feb. 3, Brent oil price rose to $56.96 per barrel, from $48.98 -- a 16 percent increase, according to official figures.
As a result, Saudi Arabia's stock exchange Tadawul All-Share Index, TASI, rose 3 percent from Jan. 29 to reach 9.227 on Feb. 3, while Kuwait Stock Exchange, KSE, improved by 1.9 percent to reach 6.695.
Meanwhile, Qatar Stock Exchange jumped by 3.2 percent, from 11.899 points to 12.279.
The United Arab Emirates' Abu Dhabi Securities Exchange, ADX, gained 3 percent and the country's Dubai Financial Market, DFM, grew 6 percent. Similar increases occurred in Iran and Nigeria.
Oil prices had fallen due to the glut of oil supply and low global demand
"The rise of U.S. oil production and OPEC nations refusing to cut production led to oversupply," explained Ridvan Basturk.
- Divisions within OPEC
As most of the OPEC countries have benefited from rising oil prices, divisions have appeared among its members.
While Saudi Arabia, Kuwait, and the United Arab Emirates have refused to cut production to prevent the falling oil prices, other members, like Venezuela and Iran, have strongly advocated for lower oil output.
The oil cartel decided on Nov. 27 that it would not cut production until its annual meeting this June.
Iran's president, Hassan Rouhani, claimed on Jan. 13 that low oil prices were "a plot" by Saudi Arabia and Kuwait. The same day, Venezuela's president said the fall was a result of U.S. "imperialist domination."
Kuwait's oil minister, Ali Saleh al-Omair, responded the following day, stating that his country did not harbor any ill will towards anyone, nor would it participate in oil price wars.
Anadolu Agency
In the past three weeks, oil prices have risen gradually after having decreased more than 60 percent since June, dipping below $46 per barrel on Jan. 13 -- the lowest point for the price of oil since March 2009.
"Rising oil prices since the last days of January has created a positive atmosphere for stock exchange of the countries whose revenues are highly dependent on oil sales," Ridvan Basturk, a research analyst at Istanbul-based ALB Securities, told The Anadolu Agency.
The price of global benchmark Brent crude oil climbed 28 percent since Jan. 13, almost reaching $59 per barrel Tuesday.
Meanwhile, the American benchmark West Texas Intermediate increased 18 percent, climbing above $54 per barrel Tuesday, amid weak U.S. oil rigs data and production losses.
Furthermore, between Jan. 29 and Feb. 3, Brent oil price rose to $56.96 per barrel, from $48.98 -- a 16 percent increase, according to official figures.
As a result, Saudi Arabia's stock exchange Tadawul All-Share Index, TASI, rose 3 percent from Jan. 29 to reach 9.227 on Feb. 3, while Kuwait Stock Exchange, KSE, improved by 1.9 percent to reach 6.695.
Meanwhile, Qatar Stock Exchange jumped by 3.2 percent, from 11.899 points to 12.279.
The United Arab Emirates' Abu Dhabi Securities Exchange, ADX, gained 3 percent and the country's Dubai Financial Market, DFM, grew 6 percent. Similar increases occurred in Iran and Nigeria.
Oil prices had fallen due to the glut of oil supply and low global demand
"The rise of U.S. oil production and OPEC nations refusing to cut production led to oversupply," explained Ridvan Basturk.
- Divisions within OPEC
As most of the OPEC countries have benefited from rising oil prices, divisions have appeared among its members.
While Saudi Arabia, Kuwait, and the United Arab Emirates have refused to cut production to prevent the falling oil prices, other members, like Venezuela and Iran, have strongly advocated for lower oil output.
The oil cartel decided on Nov. 27 that it would not cut production until its annual meeting this June.
Iran's president, Hassan Rouhani, claimed on Jan. 13 that low oil prices were "a plot" by Saudi Arabia and Kuwait. The same day, Venezuela's president said the fall was a result of U.S. "imperialist domination."
Kuwait's oil minister, Ali Saleh al-Omair, responded the following day, stating that his country did not harbor any ill will towards anyone, nor would it participate in oil price wars.
Anadolu Agency
