Are Saudi Arabia's OPEC oil tactics delusional or realistic? Why it's probably the former | Al Bawaba:
"Saudi arabia did not play the role of Opec swing producer in Vienna and kept the output cap unchanged at 30 million barrels a day.
Oil Minister Ali Al Naimi refused to concede that the shale oil production in the US, the world’s largest energy consumer, was a strategic threat to the kingdom. He also ignored Iran’s pledge to raise output to four MBD even if prices fall by $20. The Saudis have the lowest production costs, highest spare capacity and are producing 10 MBD of the benchmark Arabian Light crude. The Saudi kingdom alone has the power to act as the Opec’s swing producer, to punish quota violators by causing oil prices to crash (a strategy Shaikh Zaki Yamani used to punish Nigerian quota cheating and respond to Britain’s North Sea offshore oilfields in the 1980s)."
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