Gulf bourses deepened losses with falling oil prices

June 13, 2016 13:34
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Oil prices fell in early trading on Monday, as a result of increased economic concerns in Asia and the strengthening US dollar, making imports of fuel for countries that use other currencies more expensive.

It fell engagements futures for Brent International for less than $ 50 a barrel registered to $ 49.89 in early trading at about 65 cents or 1.29% from its price at the last adjustment, declining price of WTI US mediator 78 cents, or more than 1.5% to $ 48.29 a barrel.

Analysts pointed out that the price of oil fell due to a sharp decline in the willingness to take risks and "rise of the dollar and US Treasury bonds."

The dollar rose about 1.3% from its level in June low against a basket of other major currency as a result of a possible rise in US interest rates and concerns about the Asian economy, which led to a decline in the currency there.

And it leads to higher dollar making imports of dollar-denominated oil more expensive for countries that use other currencies.

In the same context Gulf bourses opened in the red zone at the start of trading Monday on fears of a continued decline in the price of oil in the Gulf bourses remained entirely dependent on oil as a key resource.

Where the Dubai Mercantile Exchange fell by about 0.4% at the beginning of losing trades 13 points, while Abu Dhabi stocks fell about 6 points.

The Saudi bourse recorded a decline of 0.2% at the start of trading with a state of pessimism among investors in the bourse over trade