Saudi Stocks Plunge and Fears of a Shortage of Exported Crude Escalate

Exclusive Follow-ups – Al-Khabar Al-Yemeni:

The Saudi stock market recorded on Sunday its largest daily loss since the beginning of April, with the main index falling by 1.3%, coinciding with a decline in the shares of major companies and warnings in the oil market about the repercussions of the halt of the Saudi pipeline.

According to Reuters, Aramco’s share fell by 1.6%, while Luberef’s share recorded the largest losses of the session with a decline of 10%, while Ma’aden fell 3.2% and Al Rajhi Bank fell 1.2%.

In the energy market, oil buyers and traders warned of the possibility of an imminent shortage in the quantities of Saudi crude designated for export, unless the pipeline is restarted in the coming days.

This warning adds new pressure on the Saudi market, as the continued halt of the pipeline may limit the Kingdom’s ability to deliver part of its oil production to foreign markets and increases the sensitivity of the energy sector and related stocks to security and logistical developments.