Singapore: Oil heavyweights Saudi Arabia and the UAE vowed on Wednesday to pump millions more barrels of crude as they stepped up a price war after Russia refused a deal to cut output.
OPEC kingpin Saudi Arabia and its ally the UAE, the cartel's fourth-largest producer, said they will together boost production by at least 3.5 million barrels per day (bpd), to 16.3 million bpd, from April.
Riyadh and Abu Dhabi, who rely heavily on oil revenues, also unveiled plans to raise their production capacities by one million bpd each.
Although increases in capacity take a long time and need huge investments, the announcements from Riyadh and Abu Dhabi add to the psychological warfare shaking oil markets.
Energy giant Saudi Aramco said it plans to raise its crude production capacity by one million bpd.
"Saudi Aramco announces that it received a directive from the ministry of energy to increase its maximum sustainable capacity from 12 million bpd to 13 million bpd," the company said in a statement to the Saudi Stock Exchange.
The decision came a day after Saudi Arabia, the world's top exporter, decided to hike production by at least 2.5 million bpd to a record 12.3 million from April.
The UAE national oil company said on Wednesday it was ready to boost its oil supplies by around one million bpd, from the current level of around three million bpd, as a price war with Russia simmers.
"In line with our production capacity growth strategy ... we are in a position to supply the market with over four million barrels per day in April," Abu Dhabi National Oil Co. (ADNOC) said in a statement.
"In addition, we will accelerate our planned five million bpd (output) capacity target," the state-owned firm said.