Sept 11 Reuters Major Gulf stock markets fell in early trade on Wednesday, dragged by weaker oil prices, while investors awaited key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also trimmed its expectation for next year, marking the producer group39;s second consecutive downward revision.
China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 bpd in 2024 from 700,000 bpd. Oil use in the world39;s secondlargest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said.
Oil prices stabilised after dropping more than 3 on Tuesday, but still hovered near threeyear lows after OPEC revised down its demand forecast for this year and 2025.
Brent crude futures was last 0.43 higher at 69.49 a barrel.
Saudi Arabia39;s benchmark index dropped 1, dragged by a 0.7 fall in Al Taiseer Group and a 1.3 decrease in Al Rajhi Bank.
Elsewhere, oil giant Saudi Aramco dropped 0.3.
Investor focus will now be on the U.S. Labor Department39;s consumer price index report later on Wednesday for policy clues although the Fed has made it clear employment has taken on a greater focus than inflation.
While the Fed is widely expected to cut rates next week, the size of the rate cut is still up for debate, especially after a…