UAE ready to raise oil supply by 1 mn barrels per day

Abu Dhabi: The UAE national oil company said on Wednesday it was ready to boost its oil supplies by around one million barrels per day 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. said in a statement.

"In addition, we will accelerate our planned five million bpd (output) capacity target," the state-owned firm said.

The United Arab Emirates' move mirrors that of Gulf ally Saudi Arabia in flooding the markets with millions of barrels of oil to secure market share after a production cut agreement with non-OPEC producers led by Russia flopped on Friday.

Saudi Arabia announced plans on Tuesday to raise its production to 12.3 million bpd, effectively increasing its supplies by 2.5 million bpd and escalating its price war with Russia.

The UAE currently pumps around three million barrels per day but it has earmarked more than USD 132 billion in investments to raise its output capacity to 4.0 million bpd this year and to 5.0 million bpd in a decade's time.

ADNOC said it would also follow Saudi Arabia by announcing new prices for March and April deliveries.

"In response to market conditions, and to provide better forward visibility to our customers, ADNOC will shortly announce forward prices for the months of March and April 2020," it said.

"This decision has been made to ensure that our customers have visibility of the price so they can plan accordingly."