Posted on 09/11/2015 9:57:16 AM PDT by bananaman22
The Saudis are on track to sacrifice ~$100 billion in crude export revenues in 2015, or 45 percent of 2014’s ~$219 billion in crude export revenues, in pursuit of market share, the measure of success Saudi Oil Minister Ali bin Ibrahim Al-Naimi announced at the November 27, 2014 OPEC meeting.
What do the Saudis plan as their encore in 2016? Will they continue pursuing market share over other goals (e.g., total revenue, economic diversification, OPEC conciliation), or will they alter course, and if so, is there a superior alternative?
Publicly, Saudi officials appear unwavering in support of market share. The crude oil futures markets and many pundits reflect this official line. Saudi economic fundamentals, IEA projections through 2020 for the oil market, and the currency markets—pressuring the Riyal-US$ peg—suggest the pursuit of market share is at best a chimera, at worst necrotizing fasciitis (flesh eating bacteria) for Saudi Arabia.
(Excerpt) Read more at oilprice.com ...
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