Saudi Arabia and Russia Dig In for a Long, Bitter Oil-Price War

Saudi Arabia and Russia Dig In for a Long, Bitter Oil-Price War

Saudi Arabia and Russia dug in for a long and destructive oil-price war, as Moscow responded forcefully to Riyadh's opening salvo.. Its largest producer will pump significantly more oil next month and Energy Minister Alexander Novak said the country's share of export markets -- under attack from Saudi Aramco 's steep price cuts -- will be preserved.. Higher production could go some way to offset lower prices, but Russia can also dip into its $150 billion wealth fund to offset the slump and bolster the ruble.. The kingdom slashed its crude prices over the weekend, with the biggest reductions aimed at Russia's prime markets in Europe.. Riyadh plans to maximize production to compensate for lower prices, the people said, potentially pumping a record 12 million barrels a day.. Even a 20% increase in oil production wouldn't compensate for crude prices that are less than half the level Saudi Arabia needs to balance its budget.. Oil Slammed by Price War and Virus in Worst Loss Since 1991.