Markets around the world are nosediving on Monday owing to a combination of plummeting oil prices and a surge in global coronavirus cases.

A group of oil-producing nations known as OPEC failed to reach a deal with its allies over oil output cuts following a meeting in Vienna on Friday. This led OPEC kingpin Saudi Arabia to slash its official selling prices for April and reportedly prepare for an increase in production.

The shocking move came after OPEC ally Russia rejected the 14-member organization's recommended production cuts of 1.5 million barrels per day from April until the end of the year in a bid to support energy prices, which along with global stock markets have been ravaged by falling demand amid the coronavirus outbreak.

The Kremlin's decision not to help prop up energy prices not only shattered the coalition efforts to curb production, but will also likely impact U.S. shale oil producers.

"If you look at Russia, they do not consider indefinite production cuts to be a viable strategy for their oil industry, I think they need to see a structural shift in the supply side, that is the only way you move beyond this era of cuts, and U.S. shale, I would say, is firmly in the crosshairs," Thom Payne, head of offshore, rigs and wells at Westwood Global Energy Group, told CNBC's "Street Signs Asia" on Monday.

Payne added that Russia "smells blood" in the weak U.S. shale sector and would be looking to shave 1.5 to 2 million barrels a day off U.S. shale production, which has increased sharply in recent years.