Equity markets across the Middle East nosedived on Monday, extending their losses from the previous session, as oil prices fell after Saudi Arabia slashed its official selling price for crude for April and planned to raise production significantly next month.

The Saudi move, which came after Russia refused to support deeper cuts in oil output cope with the outbreak of coronavirus, caused Brent futures to drop 22% to $37.05 a barrel by 1000 GMT.

"The Saudi reaction to the breakdown (with Russia) was to revert to the 2014 playbook. By precipitating an oil price collapse, they are looking to end their subsidy of higher-cost producers," said Akber Khan, head of asset management at Al Rayan Investment. "This is a painful strategy that requires time to play out and failed on the previous attempt."

Saudi's index closed down 7.8% in its fourth straight day of losses, leaving its year-to-date loss at 24.7% this year so far.

Saudi Aramco ended down 5.5% at 28.35 riyals ($7.55).

Arqaam Capital cut its Aramco rating to hold on Monday, citing the company's exposure to the oil price cut and the impact on its 2020 earnings.

Al Rajhi Bank was down 8.1% and Saudi Basic Industries down 9.1%.

The Qatari index dropped 9.7%, its biggest daily loss in at least two decades. Qatar National Bank plunged 10%.

The Dubai index fell 8.3% to its lowest since April 2013. Lenders Dubai Islamic Bank shed 9.4% and Emirates NBD 10%.

Air Arabia closed down 6.1% after Saudi Arabia suspended travelling from UAE.

In Abu Dhabi, the index ended 8.1% down, its biggest intra-day loss since November 2009. First Abu Dhabi Bank retreated 8.5%.

Dana Gas slumped 10%, even though it said that its long-term gas sale contracts were unaffected by falling oil prices.

Kuwait's premier index dived 10%. National Bank of Kuwait dropped 11.3%.

Egypt's index was down 7.3% with Commercial International Bank Egypt losing 6.7%.

SAUDI ARABIA plunged 7.8% to 6,316 points ABU DHABI fell 8.1% to 4,039 points DUBAI lost 8.3% to 2,079 points QATAR was down 9.7% to 8,160 points EGYPT dropped 7.3% to 10,983 points BAHRAIN slipped 5.8% to 1,472 points OMAN fell 5.6% to 3,772 points KUWAIT plunged 10.3% to 5,159 points

($1 = 3.7534 riyals)

(Reporting by Maqsood Alam in Bengaluru, additional reporting by Nafisa Eltahir in Dubai; editing by Larry King) ((Maqsood.Alam@thomsonreuters.com;))