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| 12 February, 2018

Oil prices rose early on Monday

Ongoing production cuts led by OPEC was undermined

Oil prices recovered early on Monday some of last week’s losses after falling more than 3 percent on Friday, as ongoing production cuts led by OPEC were undermined by a rise in crude supplies.

Brent crude futures were at $63.42 per barrel at 0250 GMT, up 63 cents, or 1 percent, from the previous close.

U.S. West Texas Intermediate (WTI) crude futures were at $59.83 a barrel. That was up 63 cents, or 1.1 percent, from their last settlement.

In stocks, global markets found their footing early on Monday after days of volatile trading.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8 percent, having suffered a 7.3 percent loss last week.

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In the Middle East, most stock markets edged down on Sunday.

Petrochemical shares dragged down the Saudi index on Sunday, which fell 1.0 percent. Shares in the petrochemical sector were hit by a fall in oil prices.

Al Tayyar Travel closed 1.7 percent lower. It reported that its annual net profit shrank to 497 million riyals ($132.5 million) from 814 million riyals; fourth-quarter profit was 17 million riyals, far below NCB Capital's prediction of 113 million riyals for the quarter.

Dubai’s index edged down 0.2 percent as Emaar Properties fell 1.2 percent after the company said it made a net profit of $1.55 billion in 2017. Emaar is expected to formally release annual earnings in the coming days.

Abu Dhabi's index fell 0.3 percent but Abu Dhabi National Energy Co surged 3.5 percent.

Qatar's bourse climbed 1.7 percent on the back of determined buying by local institutional investors, according to exchange data.

Barwa Real Estate climbed 3.8 percent. It reported a rise in annual net profit to 1.71 billion riyals ($470 million) from 1.61 billion riyals and kept its dividend unchanged.

Egypt’s index fell 0.6 percent, Kuwait’s index edged down 0.2 percent while Bahrain’s index edged up 0.04 percent and Oman’s index dropped 0.3 percent.

In currencies, the dollar traded lower against the yen, easing 0.2 percent to 108.62 yen on Monday.

The yen is seen as a safe haven, and the demand for the yen has increased after last week’s drop in global markets.

Against a basket of six major currencies the dollar was also lower.

Gold prices edged up early on Monday as the dollar was weak. Spot gold was up 0.3 percent at $1,320.19 an ounce, as of 0111 GMT.

In other news, the central bank of Egypt said on Sunday that remittances from expatriate Egyptians rose by 29.3 percent year-on-year in December to around $2.6 billion.

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© ZAWYA 2018