Saudi Arabia boosts output amid oil war with Russia
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Saudi Arabia isn’t backing down in an oil-market war that erupted over the weekend.
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State-run Saudi Aramco said Tuesday it will increase April production to 12.3 million barrels per day, or 300,000 more than the oil giant’s maximum sustained capacity of 12 million.
Brent crude oil rose 10 percent to $37.80 a barrel Tuesday morning. The international benchmark plunged by 24.1 percent to $34.36 a barrel the prior session after Saudi Arabia cut prices and said it would raise production in April. The drop was the biggest since the start of the 1991 Persian Gulf War.
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“Against a backdrop of coronavirus-related slump in demand, Saudi Arabia appears to have abandoned efforts to balance the oil market and is instead aiming to protect market share,” wrote Caroline Bain, chief commodities economist at the London-based research firm Capital Economics. “Its pledge to significantly raise production from April will result in a large market surplus.”