Stock markets in the United Arab Emirates closed higher on Friday, tracking a sharp rebound in oil prices after Russia announced plans to reduce its oil production next month.

Russia will cut oil production by 500,000 barrels per day, or around 5% of output, in March, Deputy Prime Minister Alexander Novak said on Friday, after the West imposed price caps on Russian oil and oil products.

Oil prices - a key catalyst for Gulf financial markets - jumped more than 2%, recovering from the previous session’s loss.

Brent crude futures rose $1.80, or 2.13%, to $86.30 a barrel by 1120? GMT.

Dubai’s main index gained 0.2%, supported by a strong performance in utilities and banking stocks, with Emirates Central Cooling System Corp rising 1.3%, while sharia lender Dubai Islamic Bank edged up 0.5%.

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However, business park operator Tecom Group declined 3.4% after the firm posted a 28% increase in full year net profit to 725.6 million dirhams ($197.56 million), missing analysts’ estimate of 839.5 million dirhams.

Dubai’s main index gained this week thanks to improving overall conditions but could see some price corrections if investors move to secure profits, Said Fadi Reyad, chief market analyst at CAPEX.com MENA said.

The index posted a 2.1% weekly gain, according to Refinitiv data.

Abu Dhabi’s benchmark index settled 0.2% higher, rebounding from early losses to extend gains to straight 10th session.

The banking sector led the gains with Abu Dhabi Islamic Bank rising 2.2%, while UAE’s third-largest lender Abu Dhabi Commercial Bank advanced 0.3%.

However, UAE’s largest lender First Abu Dhabi Bank dipped 0.3% after it said it was not currently evaluating an offer for Britain’s Standard Chartered, the second time it has quashed reports of an imminent bid.

================================= ABU DHABI    up 0.2% to 9,951 DUBAI        rose 0.2% to 3,454=================================