Saudi stocks open higher as deal to save oil market looms

The main stock index of Saudi bourse rose nearly two percent despite a delay in talks between the Organization of the Petroleum Exporting Countries (OPEC) and major oil producers.

The Saudi Tadawul market lost some gains less than one hour after the trading week started in the Gulf states on Sunday, but was still up around half a percent. 

Stock in other countries in the region were mixed, with the premier index of Boursa Kuwait gaining around one percent, and the Bahrain stock market was also slightly up. Stock markets in both Qatar and Oman were slightly down, losing around 0.1 percent each.

On Saturday, it was revealed that the meeting between OPEC and allied oil exporters led by Russia, initially scheduled for Monday, could be postponed until Thursday. While the delay may give the participants more time to prepare their proposals on ways to boost the oil market, it is believed that a rift between Moscow and Riyadh was one of the main reasons behind the rescheduling.

Crude prices have been in downward spiral in 2020, as the coronavirus pandemic dried up demand for crude by around 15 million barrels per day, analysts say. The fall from the demand shock deepened as Russia and Riyadh failed to agree a new oil deal in early March. The situation in the tumbling oil market has been deteriorating as the OPEC kingpin, Saudi Arabia, decided to flood the market with cheap oil, offering discounts on its barrels and simultaneously boosting production.

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