This was the Saudi plan all along. It seems to be working. If they can drive the price down to or close to $30 it will effectively shut down all Fracking operations and much of U.S. Drilling. Even after the price starts climbing again, the costs to start back up are so prohibitive, it will take years to get back to where we were.
It may reduce new drilling, but won’t the wells already drilled and pumping oil continue to pump oil. The cost of pumping already discovered oil is much less than $50.00 a barrel. Also, if the price oil starts to creep up, the drillers (existing new) will be back.
Saudi Arabia is producing less oil than last year. OPEC in total is near steady amounts. It is the US and to a lesser amount Canada that is adding substantial production increases to the supply market.
The Saudis are not controlling this market.