Riyadh-Mubasher: Benchmark crude prices continued their downward movement in January (Brent: -7.1% and WTI: -9.2%) as lifting of sanctions against Iran is expected to add to the oil glut in the market, Al Rajhi Capital said in a report.
However, oil prices bounced back sharply in the last week of January after Russia said that it was open to talks with the OPEC for coordinated production cuts to balance the supply-demand mismatch.
The weakness in crude prices and the soft demand scenario negatively impacted petrochemical product prices, which continued to head southward in line with the global oil prices.
The IMF lowered its global economic growth forecast for the year, indicating the sluggish demand expectation.
The Saudi Petrochemical index declined sharply by 12%, led by Petro Rabigh (-21.1%), Tasnee (-19.5%) month-on-month. Meanwhile, Tadawul All-Share Index (TASI) also declined significantly by 13% month-on-month.
