Stock markets in the Gulf were up in early trading on Tuesday, as oil prices rose on positive market outlooks for the short term and stronger U.S. economic data.

Oil prices, a catalyst for the Gulf's financial markets, reversed the prior session's losses and gained 0.6% Brent LCOc1 trading at $73.06 a barrel by 0800 GMT.

Saudi Arabia's benchmark stock index .TASI rose 0.1%, aided by gains in the finance, utilities and communications sectors. ACWA Power 2082.SE gained 2%.

First Milling Co 2283.SE added 1.9% after its board had approved construction of new flour milling unit at an estimated cost of 123 million riyals.

The Abu Dhabi benchmark index .FTFADGI was up 0.1%. First Abu Dhabi Bank FAB.AD, the UAE's largest lender, rose 0.7% to 13.56 dirham per share.

"FAB is testing key resistance level at 13.50 dirhams with noticeable bullish momentum. Breaking this level would trigger a buy signal with targets around 14 and 14.50 dirhams", noted Maged Essam, market strategist at BHM Capital.

Palms Sports PALMS.AD climbed 1.2% after the sports management firm said on Monday it has a renewed 206 million- dirham contract with UAE's ministry of education.

The Qatari benchmark index .QSI gained 0.1%, with most sectors in positive territory. Qatar National Bank QNBK.QA, the region's largest lender, added 0.5% while Gulf International Services GISS.QA increased by 0.9%.

Meanwhile, Qatar's energy minister told the Financial Times Sunday the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.

Dubai's benchmark stock index .DFMGI was up 0.1%, pushed up by real estate and consumer staples sectors. Tecom Group TECOM.DU gained 1.3% and Parkin Company PARKIN.DU added 0.9%.

($1 = 3.7579 riyals)

(Reporting by Md Manzer Hussain; editing by Philippa Fletcher)