• Oil prices retreat on API data
  • Asia shares drop again on trade tensions
  • Saudi Arabia and Egypt’s indices add 1.7 percent
  • Dollar edges lower, gold steadies

Oil prices

Oil prices dropped early on Wednesday after the American Petroleum Institute (API) said yesterday that the United States’ crude stockpiles rose by 2.4 million barrels last week, to 480.2 million barrels, compared with analysts’ expectations for a decrease of 599,000 barrels.

Official data from the U.S Energy Information Administration’s oil stockpiles report is due later today. Prices dropped also as Saudi Arabia said it was committed to a balanced and sustainable oil market.

Brent crude futures were down 38 cents, or 0.5 percent, at $71.80 at barrel by 0219 GMT, having risen 21 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures for July delivery were down 58 cents, or 0.9 percent, at $62.55. The June contract expired on Tuesday, settling at $62.99 a barrel, down 11 cents.

Global markets

Asian shares dropped again on Wednesday on trade tensions between the United States and China.

The Chinese markets, which have endured a volatile few months, started off on a cautious note. The Shanghai Composite Index was last down 0.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan moved in and out of the red and last stood little changed.

“Some in the markets will continue to cling on to hopes of the United States and China reaching an agreement at the upcoming G20 meeting,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, told Reuters.

“But the ongoing trade conflict looks to be a protracted one, and its potentially negative impact on various economies is becoming a running concern.”

Middle East markets

Saudi Arabia’s index gained 1.7 percent on Tuesday with Al Rajhi Bank adding 2.2% and Saudi Basic Industries up 3.3%. Saudi International Petrochemical closed 3.4% higher.

The Dubai index rose 1% as all but one of its real estate stocks rose. Emaar Properties, Dubai's largest listed-developer, increased 2.9% while its units Emaar Malls and Emaar Development were up 2.3 and 3% respectively.

The United Arab Emirates said on Tuesday that it will grant 6,800 foreign investors permanent residency under a new "Golden Card" system after they invested a combined 100 billion dirhams ($27.23 billion) in the Gulf state.

Abu Dhabi's index closed 1.1% higher, led by a 1.3% increase in the country's largest lender, First Abu Dhabi Bank.

Qatar's index was down 2%, with 17 of its 20 stocks sliding. Qatar National Bank, dropped 2.4%.

Egypt’s blue-chip index gained 1.7 percent, Kuwait’s premier market index gained 0.9 percent while Oman’s index edged 0.1 percent lower and Bahrain’s index added 0.9 percent.

Currencies

The dollar index, which measures the greenback against a basket of six major currencies was last a shade lower at 98.014, having touched 98.134 overnight.

Precious metals

Gold prices steadied on Wednesday.

Spot gold edged down 0.1% to $1,273.96 per ounce at 0114 GMT. In the previous session the metal fell to $1,268.97, its lowest since May 3.

U.S. gold futures were unchanged at $1,273.60 an ounce.

(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)

(gerard.aoun@refinitiv.com)


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