to offset lower revenues they pump more...
They have a multi-pronged effort. Russians, Iran, Qatar, Venezuela, and US fracking.
sub $40/bbl helps them in many ways....the Russinas don’t have the money to play games with Iran is probably the most pressing to them, Qatar rocking the boat, are also targets. Mexico suffers, Venezuela suffers, and US fracking goes belly up.
Just read today that Saudis say they can handle oil at $40/bbl long enough.
to offset lower revenues they pump more
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They have not increased production.
sub $40/bbl helps them in many ways
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Not if the global economy is softening and demand for oil is slipping. The International Energy Agency cut its demand growth forecasts for 2015, noting that the rout in prices had so far failed to stimulate buying.
The Saudi’s are not immune from the effects of lower revenues. While they can ride it out in the short run, it remains to be seen how long they will allow low prices to continue.