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Gulf Markets Reel Despite Tadawul Bounce; PGA Tour Snubs $1.5B LIV Deal; Oil Dives Below $60
Tuesday, April 8, 2025
Happy Tuesday everyone!
Gulf markets continued to bleed on Monday, dragged down by slumping oil prices and global investor jitters — even as Saudi’s Tadawul posted a minor rebound. The pressure is mounting: oil has plunged below $60 after Saudi Arabia’s surprise price cuts, triggering fears of oversupply and weakening demand. Meanwhile, in the world of sports and politics, the PGA Tour has rejected a $1.5 billion offer from Saudi Arabia’s Public Investment Fund, refusing to keep LIV Golf as a standalone league.
Let’s dive in!
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Minor Recover for Saudi, but Gulf Markets Extend Losses Amid Oil Plunge And Global Sell-Off
📰 What is it about?
Gulf and regional stock markets continued to slide on Monday, mirroring the global sell-off and crashing oil prices.
The Dubai Financial Market (DFMGI) dropped 3.08% to 4,799.01, with Talabat plunging 9.42%, and Emaar the most traded stock, falling 2.53%.
Abu Dhabi’s ADX fell 2.59% to 8,949.17, weighed down by Adnoc Gas (-4.9%) and Alpha Dhabi, which tanked 9.9% following its listing.
Meanwhile, Saudi Arabia’s Tadawul rebounded slightly by 1.05% to 11,194.02, after a sharp 6.7% drop on Sunday.
Top losers included Batic Investments (-9.8%), while gainers like National Co. for Learning (+8.8%) and Kingdom Holding (+6.57%) helped lift sentiment.
Egypt’s EGX30 declined by 0.61% to 30,453.94, continuing its downturn after a 3.3% drop Sunday.
The Qatar Exchange (QE Index) closed down 0.35% at 9,766.05, and Kuwait’s Premier Market shed 0.64% to 8,054.40, following Sunday’s steep losses of over 5.5%.
💡 Why it matters?
The sell-off reflects investor jitters over oil price volatility, economic uncertainty, and mounting fears of a global slowdown.
Oil’s crash below $60 is hitting sentiment in energy-reliant markets like the Gulf, triggering profit-taking and sharp corrections in heavyweight stocks.
Market heavyweight losses, such as Emaar and Alpha Dhabi, are dragging indices further down, with investors cautious of further volatility.
🔜 What’s next?
Continued volatility is expected as markets digest ongoing oil price pressures and global macroeconomic risks.
Gulf markets may remain sensitive to oil price movements, especially with budget-heavyweights like Saudi Arabia and UAE needing higher breakeven oil prices.
Investors may seek safer assets or shift to defensive plays, especially if energy and real estate sectors continue to slide.
All eyes remain on potential OPEC+ policy reactions, global inflation data, and developments around U.S. trade tariffs which could further affect sentiment.
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Markets
EGX 30 | 30,453.94 | -0.61% |
DFMGI | 4,799.01 | -3.08% |
ADX | 8,949.17 | -2.59% |
Tadawul | 11,194.02 | 1.05% |
PGA Tour Rejects Saudi $1.5B Offer To Keep LIV Golf Alive Amid Merger Talks
📰 What is it about?
The PGA Tour has rejected a $1.5 billion investment offer from Saudi Arabia’s Public Investment Fund (PIF), which would have allowed the LIV Golf League to continue operating independently, ESPN reported.
The offer also included a request to name PIF governor Yasir Al-Rumayyan as co-chairman of the PGA Tour Enterprises board—currently chaired by Joe Gorder, with Tiger Woods as vice chairman.
The latest move signals a breakdown in merger discussions between the PGA Tour and PIF, despite a previous framework agreement signed in June 2023 aiming to unify men’s professional golf.
💡 Why it matters?
The PGA Tour is determined to maintain one premier global golf circuit, while the PIF insists on a dual-model approach with LIV Golf continuing as a separate league.
LIV Golf, backed by an estimated $5 billion from the PIF, has struggled to gain U.S. traction, facing low TV ratings, few sponsors, and heavy losses—reportedly $400 million in 2023 outside the U.S.
Star players like Brooks Koepka, Jon Rahm, and Dustin Johnson were lured away from the PGA Tour with nine-figure contracts, increasing pressure on both sides to find common ground.
The PGA Tour has already secured $1.5 billion from Strategic Sports Group (SSG), reducing financial urgency to accept the PIF’s terms.
🔜 What’s next?
Despite mounting public and political attention, including input from Donald Trump, who met with both parties, a final deal remains elusive.
Talks are ongoing, but the PGA Tour remains firm on its stance against keeping LIV in its current form, instead suggesting limited team events in the fall.
LIV Golf’s new CEO, Scott O’Neil, says the league is not dependent on a deal to survive, but is open to collaboration if it benefits the sport.
The future of men’s pro golf hinges on whether the PGA Tour and PIF can bridge their vision gap—a single unified circuit vs. a two-league model.
Oil Crashes Below $60 As Saudi Price Cuts Deepen Market Slump
What is happening?
U.S. oil prices have tumbled below $60 a barrel, marking a third straight day of sharp declines and hitting their lowest level in four years.
The drop was exacerbated by Saudi Arabia’s decision to slash prices on its flagship Arab Light crude to Asia by the largest margin since 2022.
The surprise price cut follows an unexpected output hike by OPEC+, further fueling concerns of oversupply amid weakening global demand.
WTI crude for next year is now trading near $58, and Brent futures dipped below $63, falling over 10% last week alone.
Why it matters:
The price plunge threatens oil-exporting countries’ budgets, especially Saudi Arabia, which the IMF says needs $90 per barrel to balance its books.
Donald Trump’s tariffs and the escalating trade war are spooking markets, with fears of a global recession cutting oil demand outlook by up to 1.1 million barrels/day, according to Energy Aspects.
Oil companies are taking a hit — shares of BP dropped up to 20%, and U.S. shale producers have fallen more than 15% since the tariff announcement.
Drilling may slow down, with a Dallas Fed survey showing $65 a barrel is needed to make new shale wells profitable.
Markets show signs of panic: record trading in bearish Brent options, and banks like Goldman Sachs and Morgan Stanley are slashing forecasts.
What’s next?
No signs of bullish relief yet as equities also slide and analysts brace for more downside in crude prices.
Traders are heavily betting on further declines, with bearish option premiums at their highest since late 2023.
Unless OPEC+ reverses course or global demand picks up, prices could remain under intense pressure.
For consumers and fuel-dependent industries like airlines and trucking, the downturn could bring short-term benefits in lower energy costs.
But for oil producers, the pain is real — and history suggests such sharp oil drops often signal recession.