The three-year deal collapsed after Moscow refused to support greater production cuts to counter the outbreak of the Coronavirus, and OPEC responded by removing restrictions on its production.
Brent futures fell 9.4 percent, the biggest daily loss in percentage terms since December 2008, to close at $ 45.27 a barrel.
The Saudi index closed down 8.32 percent, its lowest level since November 2017, with most sectors declining.
Aramco shares fell 9.1 percent, the biggest daily loss in percentage terms, to 30 riyals (eight dollars), retreating for the first time from its offering price of 32 riyals.
“Aramco is under pressure because of the failure of the deal,” said Mary Salem, head of institutions at Daman Securities.
Al-Rajhi Bank lost 7.1 percent, and National Commercial Bank, the kingdom’s largest bank, fell 10 percent.
Two sources told Reuters that Saudi Arabia, which has reduced the official selling price for its materials in April shipments, plans to increase oil production to much more than ten million barrels per day next month.
Kuwait index lost ten percent, recording its second largest loss in a single day. Financial stocks were the biggest losers, with the National Bank of Kuwait falling 9.3 percent.
The Dubai index fell 7.9 percent, marking the largest decline since October 2008. Emirates NBD lost 9.6 percent and Dubai Islamic Bank 7.7 percent.
The Abu Dhabi index closed down 5.4 percent, its biggest loss in more than five years. First Abu Dhabi Bank tumbled 6.7 percent.
In Qatar, the index fell 2.9 percent as Qatar National Bank, the largest of the Gulf banks, fell 5.7 percent, and Industries Qatar lost 3.6 percent.
In Egypt, the index lost 4 percent, most shares fell, while Commercial International Bank lost 4.7 percent.
The following are the closing levels of Arab stock market indices on Sunday:
Prepared by Hala Kandil for the Arab Bulletin – Edited by Ahmed Elhamy