[mrsmith]

“they have the savings account to do this for a couple years at least. “

But nations and companies who want to increase production have even more money at hand than Saudi Arabia. Norway’s STATOIL has almost a trillion dollar reserve fund itself.
If Saudi Arabia’s goal is to decrease non-OPEC production then, with this glut decreasing the value of oil assets, they are making it cheaper for competitors to expand and defeat that goal... not smart.
I think SA just doesn’t have a better option than to continue production.

[thackney]

Norway’s STATOIL has almost a trillion dollar reserve fund itself.

Statoil has some significant problems right now, I believe.

Statoil Scuttles Ultra-deepwater Rig Contract; Pays $350mm To Back Away
http://www.freerepublic.com/focus/news/3229630/posts

Statoil Defers Decision on $5.7B Oil Recovery Project
http://www.freerepublic.com/focus/news/3232581/posts