Saudi Oil Flows Restart, Gulf Stocks Take a Cautionary Tumble
Gulf stock markets edged down as Saudi Arabia restarted oil shipments from Yanbu, following last month's drone-strike shutdown.
The modest decline was felt across the board, with Qatar falling 0.4% and Saudi Arabia slipping 3%, with banks and stay-at-home businesses doing most of the dragging.
The near-term positive came on the supply side: trade data cited by Reuters showed that Saudi Arabia had restarted the East-West Pipeline and resumed tanker loadings at Yanbu, easing worries about an abrupt hit to exports.
However, geopolitics remained messy, with mixed messaging from Washington and Tehran keeping the risk of further disruptions on the table.
The Saudi finance ministry's projection of a 2027 budget deficit of 191 billion riyals ($50.87 billion) serves as a reminder that steady oil flows are crucial for government spending and local economic activity.