Major bourses in the Gulf rose in early trade on Monday, with the Saudi index leading gains on concerns of a fuel supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter.

Oil prices - a key contributor to Gulf economies - extended gains to a fourth consecutive session with Brent crude trading 0.69% higher at $85.59 a barrel by 0750 GMT.

Saudi Arabia's benchmark stock index rose 0.7%, boosted by heavy gains in energy and material sector stocks.

Newly listed Al Taiseer Group Talco Industrial rose 2.6% and the largest Islamic lender Al Rajhi Banking & Investment Corporation gained 1%.

Saudi Arabia's state oil company Aramco rose 1.1% after the company signed contracts worth more than $25 billion for the second phase of the expansion of its Jafurah gas field and the third phase of expanding its main gas network.

The Qatari benchmark index edged up 0.1%, continuing its winning streak to a 20th session, with the Gulf's largest lender Qatar National Bank gaining 0.1% and petrochemical maker Industries Qatar inching up 0.2%.

Abu Dhabi's main index rose 0.1%, gaining for a third session in a row, supported by a 0.4% rise in UAE's biggest listed company International Holding Company and a 2.9% jump in IHC-owned investment firm Multiply Group .

Dubai's main index was trading 0.1% higher, with Emirates Central Cooling Systems Corporation surging 3.4% and toll operator Salik Company rising 0.9%.

(Reporting by Mohd Edrees in Bengaluru; Editing by Susan Fenton)