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DUBAI, June 8 (Reuters) - Gulf stock markets look set to fall on Thursday after oil tumbled about 4 percent overnight, with Brent crude closing the last session at $48.06 a barrel, its lowest level since early May.
Saudi Arabia's bourse has been supported in recent days by expectations that MSCI will on June 20 launch a review of whether to upgrade Riyadh to emerging market status. But an oil price below $50 may negate much of that positive factor by weighing on petrochemical shares.
Qatar's stock market may fall further after the Qatari riyal dropped to an 11-year low against the dollar in the spot market - a sign of capital outflows - and Standard & Poor's downgraded Qatar's debt because of the diplomatic rift in the Gulf.
Arab states could impose an embargo on Qatar if it does not change course regarding its support of "extremism" and "destructive policies" in the region, UAE Minister of State for Foreign Affairs Anwar Gargash said on Wednesday. (Reporting by Celine Aswad; Editing by Andrew Torchia)