Saudi Arabia is quietly making a plan to increase oil output by five hundred thousand barrels every day. Brent crude and Saudi Arabian stocks are trading from fifteen months as the rising price of the commodity will lead to faster growth of the economy for the world’s largest oil exporter. The correlation of one hundred and twenty days between the Tadawul All Share Index and Crude is responding in a positive way as the Saudi stocks and oil prices move in the same direction since July 2017 with the reviving trends which are existing from past two decades.
In Riyadh, an analyst at Aljazira Capital Company, Jassim Al Jubran, stated in a conference with media that the budget and spending of Saudi Arabia is expected to expand which will be beneficial for the banking stocks, as they are considered the core of the nation’s economy. The main benchmark of the Tadawul has been increased to ten percent this year which will raise the inflow of the investors to billions of dollars.
source: Bloomberg
