Also negative for the oil market was fresh data which showed that activity in China`s factory sector shrank for the first time in seven months in December. China is a major market for Gulf petrochemical companies such as Saudi Basic Industries and Industries Qatar.
Most stock markets in the oil-exporting region have moved in line with the oil price for the last few weeks. However, some analysts believe the big declines have now taken place and stocks are likely to tread water for a while before the announcement of state budgets for 2015 - the Saudi Arabian budget is expected to be unveiled as soon as next Monday - and fourth-quarter corporate earnings in late January and February persuade investors to return.
Meanwhile, several UAE companies have announced positive news. Aldar Properties, Abu Dhabi`s largest listed developer, said on Monday that Standard and Poor`s had raised its credit rating to "BBB-/A-3", or investment grade. Aldar also said it would cut its debts by more than a third over the next two years.
Dubai builder Drake and Scull said on Tuesday its engineering unit had won an 82.5 million dirham ($22.5 million) healthcare project in Abu Dhabi.
More about:
