x Abu Dhabi, UAESunday 23 July 2017

Oil prices fall as Gulf reassures the US over supply

Markets Update: Brent crude futures fell back below $126 a barrel today, after assurances from oil producers Kuwait, the UAE, and Saudi Arabia that they would increase production to offset the blockade of Iran.

Brent crude futures fell back below $126 a barrel today, after US government officials said they had received assurances from oil producers Kuwait, the UAE, and Saudi Arabia that they would increase production to offset the blockade of Iran.

Brent futures were trading down 37 cents at $125.85 this morning, from above $126 the day before.

Local bourses followed global markets into the green after an injection of optimism from the US which signaled its confidence in the country's economic recovery.

The Dubai Financial Market General Index was up 1.2% in early trading to 1,702.07. The index is up 25.7 per cent during the year to date. The Abu Dhabi Securities General Markets Index rose 0.41 per cent 2,633.90, bringing its year to date increase to 9.7 per cent.

Abu Dhabi property companies were the early risers, adding to previous gains. Eshraq Properties rose 5.26 per cent. Aldar Properties gained 5.15 per cent. Sorouh Real Estate was up 5.84 per cent. Aldar and Sorouh have continued their rise after Sunday night's potential merger announcement.

Shares in Taqa, the Abu Dhabi National Energy Company, rose after the company announced a 10 per cent dividend. The stock was up 2.38 per cent to Dh1.29.

The rises come against a backdrop of increasing local optimism about the recovery of the UAE property market, and encouragement an economic recovery is taking hold in the US.

Last night the US Federal Reserve held off on expanding its post-crisis programme of pumping money into the country's economy, noting improvements in the labour market.

Gold futures were down 1 per cent today on the news, losing 17 cents to $1677.20 a troy ounce. The precious metal has fallen for three straight days as investors take flight from the safe haven stock on signs the US economy is recovering.

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