• The Organization of the Petroleum Exporting Countries and allies led by Russia agreed to reduce output by 9.7 million barrels per day in May and June – equal to nearly 10pc of global supply.
  • Saudi Arabia's benchmark index dropped 0.9pc, with Al Rajhi Bank declining 1.7pc and oil giant Saudi Aramco was down 1.7pc.

Saudi Arabia's stock market slipped for a second consecutive day on Monday, weighed down by concerns that the agreed record global cuts in oil output will not be sufficient to reduce a glut as the coronavirus pandemic hammers demand.

The Organization of the Petroleum Exporting Countries and allies led by Russia agreed to reduce output by 9.7 million barrels per day in May and June – equal to nearly 10pc of global supply. But the reduction was dwarfed by the near 30 million barrels per day drop in demand in April already anticipated by forecasters like Goldman Sachs.

On Sunday, Goldman Sachs said oil prices would keep falling in the coming weeks, reasoning that a “historic yet insufficient" deal by big oil producers to cut output is unlikely to offset a coronavirus-led demand rout.

Saudi Arabia's benchmark index dropped 0.9pc, with Al Rajhi Bank declining 1.7pc and oil giant Saudi Aramco was down 1.7pc.

Amongst others, Saudi Telecom Company (STC) retreated 1.8pc after the teleco extended its memorandum of understanding for a period of 90 days with Vodafone to acquire the group's shareholding in Vodafone Egypt.

In Dubai, the index lost 1.1pc, as its largest lender Emirates NBD and blue-chip developer Emaar Properties were down 3.4pc and 2pc, respectively.

The Abu Dhabi index fell 1.6pc, led by a 4.5pc drop in First Abu Dhabi Bank.

The United Arab Emirates, the region's tourism and business hub, has the second highest regional load of coronavirus infections at 4,123 cases and 22 deaths.

In Qatar, the index lost 0.7pc with the Gulf's largest lender Qatar National Bank falling 2.3pc.

The bank on Sunday posted a first-quarter net profit of 3.57 billion riyals ($980.77 million), little changed from a year earlier.

Outside the Gulf, Egypt's blue-chip index gained 1.1pc, as 29 of 30 stocks on the index rising including Juhayna Food, which ended 7.7pc higher.

Stock exchange data showed that Egyptian investors were net-buyers of the stocks.