Most stock markets in the Gulf were trading higher early on Tuesday as oil prices ticked up on concerns about supply.
Dubai’s main share index, up 0.40%, was set for a second consecutive session of gains and Abu Dhabi’s benchmark index was set to snap two consecutive sessions of losses.
A lower than expected supply hike from OPEC+ is boosting oil prices, a catalyst for stock markets in the Gulf. Brent crude futures were up 0.19% to $64.75 a barrel by 0627 GMT.
Adding to supply concerns was a wildfire in the province of Alberta in Canada that has led to a temporary shutdown of certain oil and gas production. According to Reuters calculations, the wildfires have disrupted close to 7% of Canada’s oil production.
Real estate financier Amlak Finance was the top gainer on the Dubai index, up 14.29%.
First Abu Dhabi Bank, the United Arab Emirates’ biggest lender, was up 1.15% in early trade.
Gulf stocks settle varied on tariff uncertainty, rise in oil prices
In Qatar, the benchmark stock index was up 0.61%, helped by a 2.15% rise in Qatar Gas Transport and a 1.86% gain in consumer goods conglomerate Industries Qatar.
Bucking the trend, Saudi Arabia’s benchmark stock index was trading flat in early trade. The 1.30% fall in Tadawul Group was offset by a 2.56% rise in insurance company Buruj Cooperative Insurance.
Geopolitical tensions aided the oil price increase, with Iran poised to reject a U.S. proposal to end a decades-old nuclear dispute. Failure of nuclear talks between the countries could result in continued sanctions in Iran, limiting Iranian supply.
Markets, however, remain cautious as U.S. President Donald Trump and Chinese leader Xi Jinping will probably speak this week, days after Trump accused Beijing of violating an agreement to roll back tariffs and trade restrictions.
Nasdaq futures and S&P 500 futures were both down more than 0.3%.
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