Saudi Arabian stocks fell in early trade on Monday, extending losses from the previous session, as record output cuts by the kingdom and other oil-producing countries was dwarfed by April demand slump.

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 10% of global supply - but the reduction still 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 slipped 0.3%, with Al Rajhi Bank shedding 0.7%, while Saudi Telecom was down 1.3%.

The latter extended its memorandum of understanding for 90 days with Vodafone to acquire the group's shareholding in Vodafone Egypt.

Elsewhere, oil giant Saudi Aramco eased 0.2%. But, the stock rose ahead of the deal on the optimism and was priced in.

In Dubai, the index gained 0.6%, helped by a 1.5% rise in Dubai Islamic Bank and a 3.3% increase in Emirates Integrated Telecommunications.

The United Arab Emirates central bank has urged commercial lenders to use the $70 billion-worth of capital and liquidity measures launched by the regulator to support the economy during the coronavirus outbreak.

Abu Dhabi's index, however, retreated 0.7%, as the country's largest lender First Abu Dhabi Bank declined 3.5%.

The Qatari index traded flat with Mesaieed Petrochemical advancing 3.9%, while Qatar National Bank lost 1.2%.

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

($1 = 3.64 Qatar riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Angus MacSwan) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))