DUBAI: Most major Gulf equities eased on Sunday on falling oil prices amid supply woes and uncertainty over a price cap on Russian oil, while the Egypt index fell on price corrections.

The crude price, which fuels the region’s growth, settled at $76.10 per barrel in volatile trading on Friday as growing recession fears negated any supply woes after weak economic data from China, Europe and the United States.

Meanwhile, US producer prices data also raised conflicting views, stirring hope of moderating inflation but also fears the Fed Reserve will need to keep interest rates higher for longer.

Most Gulf Cooperation Council countries have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to a direct impact from any monetary tightening there.

Farah Mourad, Senior Market Analyst of XTB MENA, noted GCC stock markets could see strong volatility later this week as the Federal Reserve meeting approaches.

“Also oil prices could witness further downtrend this week as recession fears may fuel demand concerns, with European price cap on Russian oil remaining a source of uncertainty,” added Mourad.

Saudi Arabia’s benchmark index fell 1.1%, with oil behemoth and index heavyweight Saudi Aramco sliding 1.8% and Luxury real estate developer Retal Urban Development Company losing 0.7%.

However, Saudi National Bank and ACWA Power jumped 2% and 4.4% respectively.

ACWA Power said on Friday it has signed a $1.5 bln agreement with Power China.

Saudi National Bank in a bourse filing said it has achieved a 9.88% shareholding in Credit Suisse Group after the latter completed the final part of its 4 billion Swiss franc ($4.28 billion) fund raising by placing stock with a group of institutional investors led by Saudi National Bank.