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Spurned by Russia last week, Saudi Arabia has unleashed an all-out war on rival producers with plans to raise its crude oil production significantly above 10 million barrels per day in April, at a time of demand destruction.

Riyadh and its OPEC counterparts were trying to convince Moscow last week to agree on co-ordinated oil cuts to the tune of 1.5 million bpd. But the Russians, eager to squeeze American shale producers in retaliation for U.S. sanctions on the country, would not budge.

“Expect more bloodshed in oil and the equities as Saudi Arabia announced on Saturday that it will hike output, consequently starting an all-out price war,” wrote Canaccord Genuity analysts.

That has triggered among the worst oil price collapses in history amid a global coronavirus scare that has sapped business and consumer sentiment. U.S. crude fell by more than 24 per cent, to US$33.20 a barrel this morning, while Western Canada Select benchmark was a touch under US$28 oil. Goldmans Sachs says oil could hit US$20 soon, especially as oil demand has been badly hurt by the health crisis.