Saudi Arabia can weather it. The others can’t.
But Saudi over-production is specifically designed to kill new US oil production. I read some article saying that a week ago...basically the words of the Saudi economics minister.
There’s no doubt about that but it’s even more complex I think. A lot of this is about Russia attempting to circumvent the petrodollar. Bankers control the price of oil as much as OPEC. This is the work of bankers as much as OPEC. Complicated doesn’t even begin to describe it.
“Saudi over-production is specifically designed to kill new US oil production. I read some article saying that a week ago...basically the words of the Saudi economics minister.”
And it’s already having an effect. We might be advised to price our oil to the market so that we can continue to explore and produce. We simply can’t allow the Opeckers to hamstring us again. If it takes $50 a barrel to get it out of the ground here, we should be prepared as consumers to suck it up and pay it, then buy whatever we need to cover our total demand at the lower prices. It might be protectionist, but it will save our butts in the long run. $2.50 gas that you can get locally, is better than $1.50 that you can’t with out kissing some raghead’s a$$ and help him fund people who want to kill you and take over your country.