Most major stock markets in the Gulf gained in early trade on Monday, amid rising oil prices, although the Abu Dhabi index bucked the trend to trade lower.

Crude prices, a key catalyst for the Gulf’s financial markets, gained after China rolled over liquidity measures to help its pandemic-hit economy, igniting hopes for a better fuel demand outlook from the world’s top crude importer.

Oil prices are expected to remain volatile as production cuts by OPEC+ will tighten supplies ahead of the European Union embargo on Russian oil, while a strong US dollar and further interest rate increases from the US Federal Reserve limit price gains. OPEC+ pledged, on Oct.

5, to cut output by 2 million barrels per day, which will lead to an actual drop of about 1 million bpd as some members are already producing below their targets.

Saudi Arabia’s benchmark index climbed 0.7%, with Retal Urban Development Co rising 1.3% and Al Rajhi Bank gaining 1%.

Saudi King Salman said on Sunday the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance.

Most Gulf bourses in red on falling oil prices; Egypt stocks jump

In Qatar, the index added 0.1%, helped by a 0.6% gain in Qatar Islamic Bank, which is expected to report its third-quarter earnings on Monday. Dubai’s main share index firmed 0.2%, with top lender Emirates NBD putting on 0.8%.

The Abu Dhabi index, however, dipped 0.2%, weighed down by a 1.3% fall in telecoms firm e&, formerly known as Emirates Telecommunications.

On the other hand, Abu Dhabi Aviation surged about 15% following an offer from ADQ to combine shareholdings in AMMROC, Etihad Engineering And Gal into Abu Dhabi Aviation.