GCC stock markets will remain volatile as oil war unlikely to die down soon | ZAWYA MENA Edition

GCC stock markets will remain volatile as oil war unlikely to die down soon | ZAWYA MENA Edition:

GCC stock markets will see further volatility as a bearish outlook for oil prices emerged following a disagreement between OPEC and its allies. More than $300 billion was wiped off from Gulf bourses this month.

“The markets have a tendency to discount good and bad news ahead of time, hence we can expect the volatility to continue on GCC markets on the upside as well as downside,” Vijay Valecha, Chief Investment Officer, Century Financial, told Zawya.

OPEC failed on Friday to strike a deal with its allies, led by Russia, on oil production cuts. This means members can now pump what they like starting April 1.

Saudi Arabia slashed crude prices for April and planned output hikes after Russia refused to support deeper oil production cuts. Valecha referred to the latest development in the “oil war” between Saudi Arabia and Russia as “a new oil Armageddon that is unlikely to die down any time soon.”