How long can the Saudi’s withstand low oil prices? One year, two years? Like all nations, they too have bills to pay and have to make investments in their future.
A reduction in revenues has opportunity costs that have to be considered.
Couldn’t happen to a nicer country.
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.
They went into this with nearly a trillion in cash reserve.