(Bloomberg) --

Dubai shares climbed the most in the Gulf on after OPEC+ agreed to a one-month extension of its record output cuts, underpinning the recovery in oil prices.

The DFM General Index rose as much as 3.0%, trimming losses this year to 24%. Gauges in Saudi Arabia, Abu Dhabi, Kuwait, Oman and Qatar gained between 0.2% and 1.6%.

Major oil producers decided at the weekend on a production-curb extension as well as a stricter approach to ensuring OPEC members don’t break their pledges. Brent crude rose 19% last week in anticipation of the meeting, in the sixth consecutive weekly advance, with shares in developed and emerging markets also jumping.

“The recovery in oil prices and further extension of record production cuts by OPEC+ until the end of July will have a positive impact on domestic markets,” said Iyad Abu Hweij, a managing partner at Allied Investment Partners PJSC in Dubai.

Read more about how the production cut extension is a win for the Saudi-Russian alliance.

MIDDLE EASTERN MARKETS:

• The main index in Saudi Arabia is still trading below the level of early March, when the kingdom started an oil price war with Russia
  • The Tadawul All Share Index rises 0.7% as of 10:19am in Riyadh, with Saudi Aramco up 0.8%
  • Al-Ahlia Cooperative Insurance gains 3.1% after signing an accord to merge with Gulf Union Cooperative Insurance
• Kuwait’s Premier Market Index advances 0.6%
  • MORE: Kuwait Asks Ministries to Cut Budget by at Least 20%: Kuna
• Qatar’s the QE Index rises 0.6%
  • READ: Qatari Officials Say Ready to Resolve Gulf Crisis With Dialogue
• MORE: Egypt and the International Monetary Fund reached a staff-level agreement on a $5.2 billion stand-by arrangement aimed to alleviate the economic impact of Covid-19
• Some earnings release:
  • Red Sea International 1Q Loss 25.1 Mln Riyals, +39% Y/y
  • Saudi Chemical First Quarter Profit 38.0 Mln Riyals, -3.4% Y/y

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