Saudi’s need about $80/barrel oil to make their budget work. They have considerable reserves but they’re burning through them very quickly.
With their considerable social welfare programs put in place over the recent past to keep the radicals and masses sedated and their war in Yemen there is tremendous pressure being put on their budget. This can be seen with their recent announcement of considering to take Aramco public. Probably the largest corporation in the world. They need cash.
Breaking Russia’s clampdown on the Sunni terror groups and their backing of Assad and Iran isn’t working out so well. Not to mention the benefit of breaking shale production in the US, which may work but will come back on line with different owners at some point.
They have way too many fixed costs for such an ambitious undertaking to work.
If oil production is cut and oil price rises maybe that will be helpful in keeping our fracking/oil shale exploitation alive. After all, killing fracking was the Saudi’s reason for pumping lots of oil while the price was falling. But the democraps don’t like fracking/low oil prices anyway.
They need about 66 a barrel, but they’re still a ways from it.