MIDEAST STOCKS-Major Gulf markets in red on falling oil prices

April 13 (Reuters) - Major stock markets in the Gulf fell in early trade on Thursday, as oil prices fell, with the Qatari bourse on course to post its first weekly loss in four weeks. Oil prices, a key catalyst for the Gulf's financial markets, retreated after rising for two sessions, with investors still showing lingering concern over a possible U.S. recession and weaker oil demand. The U.S. Consumer Price Index (CPI) climbed 0.1% last month, below economists' expectations for a 0.2% gain, and down from a 0.4% increase in February, raising expectations the Fed is likely to stop hiking rates after a possible increase in May. Fed staff assessing the potential fallout of banking stress projected a "mild recession" later this year. Saudi Arabia's benchmark index eased 0.1%, hit by a 1.1% fall in Riyad Bank . Dubai's main share index dropped 0.2%, with top lender Emirates NBD losing 1.5% and Tecom Group declining 1.2%. In Abu Dhabi, the index was flat. The Qatari share index retreated more than 1%, as most of the stocks comprising the index were in negative territory including the Gulf's biggest lender Qatar National Bank , which was down 1.9%. The index is headed for its first weekly loss in four weeks. Separately, China's Sinopec will take a stake in the eastern expansion of Qatar's North Field liquefied natural gas (LNG) project, state energy company QatarEnergy said on Wednesday. (Reporting by Ateeq Shariff in Bengaluru; Editing by Emelia Sithole-Matarise)