DUBAI, Nov 22 (Reuters) - A rally in oil prices helped lift stock markets in the Gulf early on Monday, with investors favouring oil-derivative stocks and Abu Dhabi's banks extending gains in volatile week of trade.

Brent futures were trading at $49.22 a barrel in Asian trade, their highest level since October.

Saudi Arabia's general market index rose 0.6 percent in the first 15 minutes of trade, led by petrochemical shares, with all but one of the listed producers gaining. Yanbu National Petrochemical rose 2.7 percent.

Banks recovered slightly, after being hit by profit-taking over the last three sessions. Large-cap Samba Financial Group rose 1.1 percent.

Dubai's main index edged up 0.1 percent with the volume concentrated in small and mid-sized firms.

Healthcare provider Amanat Holdings jumped 4.1 percent, but Shuaa Capital , which had soared 19.1 percent in the last two days on optimism that a new shareholder would help improve its bottom line over the long term, retreated 2.9 percent.

Neighbouring Abu Dhabi's index .ADI added 0.5 percent. Some of the blue-chip banks extended gains from the previous session, with Abu Dhabi Commercial Bank adding 1.7 percent and Abu Dhabi Islamic Bank rising 0.3 percent.

Trading has been volatile in shares in both banks over the last week on rumours that they intend to merge with other lenders. On Sunday, each bank issued a statement denying that speculation.

In Qatar, the blue chip index added 0.2 percent with gainers outnumbering decliners 11 to 3. Commodities producer Industries Qatar and oil drilling provider Gulf International Services were both up 1.0 percent.



(Reporting by Celine Aswad; Editing by Larry King) ((celine.aswad@thomsonreuters.com)(+9715 6224 7653))