What it basically says is that the short-term construction strategy of Saudi Arabia is coming down to a few projects and I’d take a guess that another 50,000 workers will be let go by the end of 2016. The question is...will the Russians see this as an opportunity now, and pump as much as possible....keeping the price ultra low, and create a fractured kingdom where chaos and order dissolve into urban warfare? If I were Putin, I’d really be thinking of some wild scenario where no oil comes out of Saudi Arabia for a long, long time. Lessen the world’s producer states by one, and let some ISIS squad run wild over the kingdom.
The gamble is “who goes broke first: Saud or the Russians?”
Russia desperately needs to pays its’ bills. They cannot do that with low oil prices.