Stock markets in the Gulf traded lower on Thursday after oil prices fell on worries about slow demand growth as coronavirus cases rise, with U.S. crude stockpiles hitting an all-time high.

Brent crude futures fell 3.4%, or $1.42, to $40.31 a barrel by 0740 GMT, erasing Wednesday's gains. 

The benchmark index in Saudi Arabia, which has reported the highest number of new coronavirus infections in the six countries of the Gulf Cooperation Council, traded 0.9% down. Al Rajhi Bank dropped 1.2% and National Commercial Bank 1180.SE , the kingdom's largest lender, declined 1.8%.

Elsewhere, petrochemical maker Saudi Basic Industries retreated 0.5%.

In Dubai, the index eased 0.6%, driven down by a 4.6% fall in Dubai Investments as the stock traded ex-dividend.

Amongst other stocks, Emirates NBD Bank retreated 1.1%.

The Abu Dhabi index declined 1.1%, with the United Arab Emirates' largest lender First Abu Dhabi Bank shedding 2.1%, while Abu Dhabi Commercial Bank was down 1.4%.

The United Arab Emirates (UAE) economy is likely to contract by 3.6% this year after economic activity slowed because of the coronavirus outbreak, the central bank said on Wednesday.

In the first quarter of this year, the UAE economy shrank by 1% year-on-year, with non-oil gross domestic product down by 3%, as opposed to hydrocarbon GDP, which rose by 3.7%.

Qatar's index fell 0.6%, with most of the stocks on the index in negative territory including petrochemical firm Industries Qatar, which was down 2.1%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Christopher Cushing) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))