Oil sinks on Saudi hike, equities shed early gains
Oil prices tumbled Wednesday after Saudi Arabia and Gulf partner UAE stepped up a 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 dived after UAE, the fourth OPEC producer, joined number one Saudi Arabia in plans to hike supplies and raise their oil production capacity by millions of barrels a day in response to Russia’s refusal to agree output cuts to support prices.
A day after the kingdom said it would 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.
