Major stock markets in the Gulf rose in early trade on Monday, tracking oil prices higher following a surprise announcement by OPEC+ to cut more production.
The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production cuts of about 1.16 million barrels per day (bpd) on Sunday.
Saudi Arabia’s benchmark index gained 0.8%, with Retal Urban Development SJSC advancing 1.5% and Dr Sulaiman Al-Habib Medical Services Group Co rising 1%.
The kingdom said it would cut output by 500,000 bpd.
The Saudi energy ministry said the country’s voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market.
Goldman Sachs raised price forecasts for Brent crude futures following the announcement, saying that while the move was surprising, the decision reflects important economic and likely political considerations.
Dubai’s main share index added 0.9%, led by a 3.6% leap in blue-chip developer Emaar Properties PJSC. In Abu Dhabi, the index was up 0.4%.
United Arab Emirates will cut oil production voluntarily by 144,000 barrels per day from May until the end of 2023, the energy minister said on Sunday.
Gulf stocks end mixed as investors remain cautious
The Qatari index climbed 1.8%, on course to snap a three-day losing streak, with the Gulf’s biggest lender Qatar National Bank QPSC jumping 3.5%.
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