Major stock markets in the Gulf were little changed on Wednesday as oil prices fell on worries about China’s COVID surge and a possible global recession.

Saudi Arabia’s benchmark index eased 0.1%, hit by a 0.5% fall in Al Rajhi Bank.

Elsewhere, shares in Saudi Aramco’s base oil subsidiary Luberef fell as much as 6.6% below its listing price in its Riyadh market debut on Wednesday.

Luberef’s share price traded as low as 92.5 riyals at the open on the Saudi Tadawul exchange, compared with its IPO price of 99 riyals.

Most Gulf markets subdued on economic concerns; Dubai gains

Oil prices - a key catalyst for the Gulf’s financial markets - fell on concerns that rising COVID-19 cases in China, the world’s top oil importer, will disrupt its economic recovery as it unwinds its pandemic restrictions, limiting fuel demand growth.

The Arctic blast that sent temperatures well below freezing levels also disrupted output, cutting oil and gas production from North Dakota and Texas.

Separately, President Vladimir Putin on Tuesday delivered Russia’s long-awaited response to a western price cap, signing a decree that bans the supply of crude oil and oil products from Feb. 1 for five months to nations that abide by the cap.

Dubai’s main share index edged 0.1% higher, with budget airliner Air Arabia advancing 1.4%.

In Qatar, the index added 0.1%, helped by a 1% gain in petrochemical maker Industries Qatar.

Asian equities swung between losses and gains in choppy trading on Wednesday as investors looked for direction after China took further steps towards reopening its COVID-battered economy, with worries over an economic slowdown weighing on sentiment.

In Abu Dhabi, the index was flat.