A recent meeting in Vienna, between the member states of Opec finally uncovered what the world had expected for months.
Saudi Arabia is playing politics with oil, forcing Opec to maintain its current production levels at 30m barrels per day, to force down the price.
Consequently oil prices have fallen 35% in 2014, tipping under the $70 mark for the first time since May 2010.
The question is why the Saudis would risk the goodwill of other Opec members, simultaneously emasculating the organisation and undercutting their ability to use it in the future to serve their interests.
BBC: Why is Saudi Arabia using oil as a weapon?
Moderator: Peak Moderation
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3rdRock
BBC: Why is Saudi Arabia using oil as a weapon?
http://www.bbc.co.uk/news/world-middle-east-30289546
The purpose is to maintain market share whilst demand is declining. It is econ 101 as the USians say. They are not the marginal producer. The marginal producer is the one(s) who will be driven out of the market.
SA couldn't care less who the marginal producer is.
SA has not done anything. They have simply stopped doing everything the US asks them to do, in order to defend US interests.
SA couldn't care less who the marginal producer is.
SA has not done anything. They have simply stopped doing everything the US asks them to do, in order to defend US interests.