Brent crude slid $0.41, or 1.1%, to $36.81 a barrel by 0740 GMT, while U.S. West Texas Intermediate (WTI) crude dropped $0.42, or 1.2%, to $33.94 a barrel.
In a statement to the Tadawul stock exchange in Riyadh - where the shares are listed - the company said: "Saudi Aramco will provide its customers with 12.3 million barrels per day of crude oil in April, an increase of 300 thousand barrels per day over the company's maximum sustained capacity of 12 million barrels".
Brent crude slid 7% on Thursday after President Donald Trump restricted travel to the United States from Europe as part of measures to try to halt the spread of coronavirus after the World Health Organization described the outbreak as a pandemic.
While many investors expect a short-term, "V-shaped recovery" in commodity prices, that is not consistent with past experience, he said. Brent was trading at roughly $36 a barrel in London, and WTI trading at about $33/Bbl in NY.
Vitol Group and Trafigura Group Ltd. failed to find buyers on Monday when they offered to sell Urals crude at the deepest discounts to a regional benchmark in nearly two months.
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In the wake of Saudi Arabia's decision during the weekend to launch an oil price war with Russian Federation, investment bankers and industry executives are mixing geopolitics with number-crunching on energy supply and demand, and reaching dismal conclusions. "They are dumping the oil from storage".
Eleven non-OPEC oil-producing countries, led by Russian Federation, have agreed to extend an agreement struck in 2016 with OPEC on reducing oil production by 1.2 million barrels per day until March 2020 as a way to stop the slide in pricing. A "game of chicken between Riyadh and Moscow" has sent oil prices plunging and produced the worst day for many equity indices since 2008. But the bounce faded quickly across markets. Moscow said that there was no point in cutting output because it would likely be too little to compensate for the impact on global demand of the virus.
The heavyweights had managed to successfully lead an informal coalition of OPEC and ten non-OPEC oil producers since 2017 to mop up a massive global oversupply of crude and bring some stability to the oil market.
For now, both sides are digging in for the price war, said Ehsan Khoman, head of Middle East and North Africa research and strategy at MUFG, a Japenese bank.
The price of Brent crude on global markets fell by almost 4 percent to $36.25.
Oil wars between Russian Federation and Saudi Arabia are not new: both were at a standoff before the OPEC+ deal three years ago. Estimates for the scope of the glut vary. "My understanding is that this would be oil loading in April - reaching U.S.in May and June", a USA market source said.