Oil prices sink on Saudi Arabia move

LONDON: Oil prices tumbled on Wednesday after Saudi Arabia and Gulf partner UAE stepped up the price war with plans to flood the global markets while a rally in equities evaporated as investors nervously await a US coronavirus relief plan.
Crude futures dived on Wednesday after UAE, the fourth OPEC producer, joined Saudi Arabia with plans to hike supplies and raise their oil production capacities by millions of barrels.
A day after the kingdom said it will boost supplies by at least 2.5 million barrels per day to 12.3 million bpd in April, Riyadh said it will further boost capacity to 13 million bpd.
UAE national oil company ADNOC said on Wednesday it was ready to raise supplies by one million bpd to 4.0 million bpd and increase capacity to 5.0 million bpd.
Markets had been showing signs of much-needed stability in early trade following two days of wild gyrations, thanks to a pledge by US President Donald Trump to unveil measures to counter the effects of the disease on the world’s biggest economy. SEE ALSO PAGE 16