Saudis Escalate Price War With Huge Output Hike, Russia Follows
- Riyadh prepares to flood the market with record crude supply
- Russia responds with signal it can boost output to new high
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Saudi Arabia escalated its oil price war with Russia on Tuesday, as its state-owned company pledged to supply a record 12.3 million barrels a day next month, a massive increase to flood the market.
The supply hike -- more than 25% higher than last month’s production -- puts Aramco above its maximum sustainable capacity, indicating that the kingdom is even tapping its strategic inventories to dump as much crude, on the market as quickly as possible.