The price war in oil escalates as both Russia and Saudi Arabia threaten to boost output - Business Insider

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The price war in oil escalates as both Russia and Saudi Arabia threaten to boost output

on Monday, but optimistic sentiment from Moscow could be driving a mild recovery in Tuesday's session.

Both nations on Tuesday hiked warnings of dropping prices and flooding the oil market with inventory. The announcements arrive after oil priceson Monday. The commodity has since recovered some losses in Tuesday trading but remains well off its early-2020 levels as the global market braces for long-term volatility.

Russia fired back in a matter of minutes, threatening to raise output by 500,000 barrels per day in the near future,first reported. The country can begin output increases as soon as April 1, when the current OPEC deal expires. While Russian oil firms can hike production by about 200,000 to 300,000 barrels per day in the short-term, the 500,000 barrels per day jump is achievable down the road, Energy Minister Alexander Novak said.

The conflict kicked off last week when OPEC sought to cut production among member nations and support oil prices. The coronavirus outbreak had eaten away at demand for the commodity, and the historically cooperative group looked to ink a new deal on Friday. Yet Russia refused to join the Saudi Arabia-led coalition, driving a Friday sell-off that cut prices by 11%.

 

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Damn! A fight btw Zar Vladimir I vs Prince MBS Egomaniacs isn’t good news for the World. Oil price drop is already sending USA Shale Oil companies to border of bankruptcy

africaupdates Both are very arrogant and both are the biggest losers It's in the interest of consumers

America should get on that huge machine that compresses garbage into crude oil.

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