Dubai: Stability in crude oil prices triggered narrowing of cost of insuring exposure of Gulf risk.
The GCC Credit Default Swaps narrowed reflecting that crude oil prices have remained largely supported at $49 (Dh180) per barrel mark.
“With oil remaining supported, the sentiment on GCC credit has improved,” Anita Yadav, head of fixed income research at Emirates NBD.
Crude futures climbed 1.4 per cent in New York Friday after surging 26 per cent during the three months ended June 30. Supply disruptions and falling US output have pushed prices up more than 75 per cent from 12-year lows early this year.
The five year Dubai Credit Default Swaps (CDS) fell 175 basis points (bps), down 21 bps on week, while Saudi Arabia CDS also fell 14 bps to be at 170 bps.
Qatar CDS fell by 13 bps to be at 107 basis points. Abu Dhabi also fell 18 basis points to be at 85 bps. Bahrain CDS also fell 15 bps to be at 390 bps.
Investors would continue to watch the crude oil prices for any further move on the CDS markets.
