Major stock markets in the Gulf retreated in early trade on Thursday following a decline in oil prices, although the Abu Dhabi index bucked the trend.

Saudi Arabia's benchmark index .TASI dropped 0.5%, weighed down by a 1% fall in Al Rajhi Bank 1120.SE and a 1.1% decline in the country's biggest lender Saudi National Bank 1180.SE.

Oil prices - a catalyst for the Gulf's financial markets - eased, as concerns over weak demand in China, the world's largest crude importer, and expectations of a nearing ceasefire deal in the Middle East overcame gains in the previous session after draws in U.S. inventories.

This year, China's oil imports and refinery runs have trended lower than in 2023 on weaker fuel demand amid sluggish economic growth, according to government data.

Dubai's main share index .DFMGI lost 0.4%, with sharia-compliant lender Dubai Islamic Bank DISB.DU falling 1.3%.

Among other losers, Parkin Company PARKIN.DU, which oversees public parking operations in the Emirates, declined 3% ahead of its earnings announcement on Friday.

The Qatari benchmark .QSI shed 0.6%, with Qatar Islamic Bank QISB.QA falling 1.5%.

In Abu Dhabi, the index .FTFADGI edged 0.1% higher, helped by a 0.6% increase in conglomerate International Holding IHC.AD.

However, the United Arab Emirates' biggest lender by assets, First Abu Dhabi Bank FAB.AD, fell 1.1% after reporting a 1% rise in second quarter net profit.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Mark Potter)