MIDEAST STOCKS-Middle East's equities dive as oil prices plunge - Reuters

MIDEAST STOCKS-Middle East's equities dive as oil prices plunge - Reuters:

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).