Gulf bourses in green as oil prices rise
Dubai's main share index (.DFMGI), opens new tab, up 0.40%, was set for a second consecutive session of gains and Abu Dhabi's benchmark index (.FTFADGI), opens new tab 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 (AMLK.DU), opens new tab was the top gainer on the Dubai index, up 14.29%.
First Abu Dhabi Bank (FAB.AD), opens new tab, the United Arab Emirates' biggest lender, was up 1.15% in early trade.
In Qatar, the benchmark stock index (.QSI), opens new tab was up 0.61%, helped by a 2.15% rise in Qatar Gas Transport (QGTS.QA), opens new tab and a 1.86% gain in consumer goods conglomerate Industries Qatar (IQCD.QA), opens new tab.
Bucking the trend, Saudi Arabia's benchmark stock index was trading flat in early trade. The 1.30% fall in Tadawul Group (1111.SE), opens new tab was offset by a 2.56% rise in insurance company Buruj Cooperative Insurance (8270.SE), opens new tab.
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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