A day after (Organization of the Petroleum Exporting Countries) OPEC and non-OPEC oil producers agreed to extend record oil production cuts until the end of July, Major stock markets in the Gulf rose sharply on Sunday.

Media reports said that OPEC and other producers led by Russia, a grouping is known as OPEC+, demanded countries such as Nigeria and Iraq, which surpassed production quotas in May and June, repay with extra cuts from July to September.

The benchmark index of Saudi Arabia, OPEC’s de facto leader, was up 0.9pc in early trade. In Dubai, the index rose 2.3pc, led by a 5.4pc rise in sharia-compliant lender Dubai Islamic Bank and a 3.1pc gain in Emaar Properties. The Abu Dhabi index gained 1.3pc, buoyed by a 2.4pc increase in top lender First Abu Dhabi Bank.

Furthermore, The Qatari index climbed 1.4pc, with most of the constituents of the index in positive territory. Qatar Islamic Bank rose 2.5pc and petrochemicals maker Industries Qatar was up 2.9pc.

Earlier OPEC members and other key oil producers agreed Saturday to extend historic output cuts through July, as oil prices tentatively recover and coronavirus lockdowns ease. The 13-members and allies, notably Russia, decided to extend by a month deep May and June cuts agreed in April to increase prices, the Organization of the Petroleum Exporting Countries said in a statement.