Saudi Arabia set to pump oil flat out in new oil order, say Citi, Goldman

London

NOT content with the blow it's dealt to US oil drillers, Saudi Arabia is set to escalate the battle for market share by raising production to maximum levels.

The world's largest oil exporter has already increased output to a 30-year high of 10.3 million barrels a day in a bid to check growth from nations including the US, Canada and Brazil. It will add even more to the global glut, according to Goldman Sachs Group. Citigroup predicts the kingdom will push towards its maximum daily capacity, which the bank estimates at about 11 million barrels, in the second half of 2015.

Saudi Arabia steered the Organization of the Petroleum Exporting Countries in November to protect its market share in the face of swelling US crude output, rather than cut supplies to shore up prices as it did in the past. Having abandoned the role of swing supplier - adjusting production in l…