Mideast Stocks: Most Gulf markets gain as oil surges on surprise OPEC+ output cuts

Mideast Stocks: Most Gulf markets gain as oil surges on surprise OPEC+ output cuts

Most stock markets in the Gulf ended higher on Monday tracking a rise in oil prices after a surprise announcement by OPEC+ to cut more production jolted markets. The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production target cuts of about 1.16 million barrels per day (bpd) on Sunday.

As a result, Goldman Sachs lowered its end-2023 production forecast for OPEC+ by 1.1 million bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively.

Saudi Arabia's benchmark index advanced 1.6%, buoyed by a 5.9% jump in Riyad Bank and a 1.2% increase in Retal Urban Development Co. 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.

According to Ahmed , head of market research MENA at XS.com, reopening of the Chinese economy could also uplift Saudi oil exports despite some lower-than-expected data on Chinese manufacturing. Dubai's main share index finished 0.9% higher, with blue-chip developer Emaar Properties climbing 3.2%. In Abu Dhabi, the index was up 0.8%.

The Qatari index leapt 2%, ending three