Saudi Oil Rebound Fuels Optimism in New Zealand Stocks

New Zealand's stock market experienced a boost as Saudi Arabia's oil exports rebounded in September. According to Reuters, citing tanker-tracking firm Kpler, shipments rose to slightly above 4 million barrels per day from 2.4 million in August.

This increase is significant because Saudi Arabia is OPEC's heavyweight, and changes in its export flows can shift expectations for global oil prices. The effect on New Zealand is more about inflation than growth, as the country imports fuel which feeds quickly into consumer prices.

The Reserve Bank of New Zealand (RBNZ) has been expecting to raise interest rates due to concerns over inflation. However, a looser supply backdrop can lower expected inflation, making investors think the RBNZ won't need to push interest rates as high. ANZ, one of the country's biggest banks, still expects the RBNZ to hike the official cash rate by 0.25 percentage points in October.