[thackney]

The reality is that the Saudis despite falling prices are producing whatever amount of oil that is necessary to maintain their income.

Most analyst consensus is Saudi is operating at a loss, compared to their spending, not the cost of producing oil.

But they also started into this price drop with nearly $800 billion in cash reserves. I don't think Russia or the other OPEC nations are near that point, relative to their spending.

Saudi oil production is actual down from last year at this time.

[allendale]

When you have $15-20 billion/month in subsidizing commitments, internal and very proximal security problems and you remain a profligate consumer of imported goods, cash reserves dwindle quickly.

[FreeReign]

Saudi oil production is actual down from last year at this time.

End of story.