Just a quick comment:
Lots of reports that Saudi Arabia is choosing not to cut production, in order to squeeze its rivals with higher production costs. I don’t buy this.
I think the answer is much simpler. There are too many producers out there, who aren’t a part of OPEC, who wouldn’t get with the program and cut their own production, for the Saudis to be able to raise the price of oil merely by cutting their own production or that of their OPEC “allies.” And if that won’t work, then they’re only cutting their own revenue — which the Saudis are too dependent on with a complete absence of diversification in their economy.
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