Saudi Arabian shares rose to the highest level in a month as the world’s largest oil producer said there is no need for an output increase at an OPEC meeting later in the day.

Saudi Basic Industries Corp., the largest petrochemical maker, Sahara Petrochemical Co. and Saudi Kayan Petrochemical Co. paced the rally. The 146-company Tadawul All Share Index rose 0.2 percent to 6,467.8, the highest since Nov. 10, at 12:46 p.m. in Riyadh.
“Investors are feeling good about the performance of the oil markets lately, with seemingly no desire by OPEC and the Saudis to raise current output levels,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh.
Crude oil rose 3.3 percent last month on the New York Mercantile Exchange and exceeded $90 a barrel on Dec. 7 for the first time in more than two years.
Saudi Oil Minister Ali al-Naimi said in Ecuador on Friday there is no need for an oil production increase at a meeting on Saturday of the Organization of Petroleum Exporting Countries. Saudi Arabia holds one-fifth of the world’s proven oil reserves.
“International markets have also been rather positive with no negativity, with the exception of China,” Halwani said.
U.S. and European stocks advanced for a second week. The S&P 500 rose 1.3 percent, extending its 2010 gain to 11 percent and the Stoxx Europe 600 Index gained 1.9 percent this week, extending a 1.6 percent advance last week.
Sabic gained 0.5 percent to 105.5 riyals, the highest since Dec. 7. Saudi Kayan rose 1.1 percent to 19.25 riyals, the highest since June 21. Sahara added 0.8 percent to 24.05 riyals.
Saudi Arabia’s stock exchange is the only Persian Gulf Arab bourse open on Saturdays.
(Source: Bloomberg)