UAE shares on Monday shrugged off the impact of the failure of oil producers to reach an agreement on production levels, ending the day little changed.
Brent futures fell to their lowest level in a week in early trading, after a much-anticipated meeting of major oil producers broke up on Monday without a final accord as Saudi Arabia refused to limit production without a similar pledge from Iran. Regional bourses opened sharply lower on the news, but recovered steadily throughout the day to finish little changed.
“The early drop in oil prices was not the end of the world some were expecting,” said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.
“Any additional surplus will probably be balanced out by the lower production from Kuwait following the strikes there, and there have been no additional comments from the Saudis regarding their ability to pump an extra million barrels per day. With that out of the picture the blow was softened somewhat.”
The Dubai Financial Market General Index opened 2.5 per cent lower, but recovered ground to close 0.1 per cent higher at 3,525.44. Abu Dhabi shares, which opened 1.1 per cent lower, closed 0.03 per cent higher at 4,557.16. Saudi Arabia’s Tadawul All Share Index ended the day 0.20 per cent higher at 6,424.90.
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