Most Gulf markets in the red on weak oil | Reuters

Most Gulf markets in the red on weak oil | Reuters

Most stock markets in the Gulf ended lower on Wednesday, dragged down by weaker oil prices, while investors awaited key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.

OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year, and also trimmed its expectation for next year, marking the producer group's second consecutive downward revision.

China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 barrels per day in 2024 from 700,000 bpd. Oil use in the world's second-largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said.

Oil prices rose after dropping more than 3% on Tuesday, but still hovered near three-year lows after OPEC+ revised down its demand forecast for this year and 2025.

Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.8%, hit by a 1.7% fall in Al Taiseer Group (4143.SE), opens new tab and a 5.1% slide in ACWA Power Co (2082.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.7%.

U.S. consumer prices - which came in post market hours - rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.

Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% year-on-year. Though inflation remains above the U.S. central bank's 2% target, it has slowed considerably.

Dubai's main share index (.DFMGI), opens new tab fell 0.9%, with Emirates NBD (ENBD.DU), opens new tab retreating 2.7%.

In Abu Dhabi, the index (.FTFADGI), opens new tab decreased 0.9%.

The Qatari benchmark (.QSI), opens new tab finished 0.2% lower, weighed down by a 2.3% fall in Qatar Gas Transport (QGTS.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.3%, led by a 8.8% jump in Egypt Kuwait Holding (EKHO.CA), opens new tab.