Major Gulf bourses fell in early trade on Thursday, tracking oil prices and global equities lower, with the Dubai index on course to snap four sessions of gains.

The MSCI world equity index, which tracks shares in 50 countries, was down 0.81%, on widespread investor concern over high inflation and the threat of recession.

Saudi Arabia’s benchmark index declined 0.5%, weighed down by a 1.2% dip in oil giant Saudi Aramco and a 4% fall in Saudi Arabian Mining Company.

Elsewhere, Sahara International Petrochemical Company slid 1.7% after the firm announced three weeks maintenance turnaround for unit International Acetyl Company.

Most Gulf bourses in red over fears of rising inflation

Crude prices, a key catalyst for the Gulf’s financial market, fell as investors cashed in on a recent rally ahead of a key producers meeting later in the day.

The fall in oil prices gathered pace after the Financial Times reported that Saudi Arabia may be prepared to raise oil production in the event of a sharp drop in Russia’s output.

In Abu Dhabi, the equities lost 0.2% with conglomerate International Holding Company slipping 0.4% and the United Arab Emirates’ largest lender First Abu Dhabi Bank falling 0.7%.

Dubai’s main share index eased 0.1%, weighed down by a 1% decrease in Sharia-compliant lender Dubai Islamic Bank and a 0.8% drop in Emirates Integrated Telecommunications.

The Qatari index dropped 0.2%, hit by a 1% fall in petrochemical maker Industries Qatar.