Tuesday, 27 June 2017

Saudi Arabia And Oil Prices: Careful Steering Needed - Bloomberg

Saudi Arabia And Oil Prices: Careful Steering Needed - Bloomberg:

"Until the Panama Canal was expanded last year, tankers traversing its old 109-foot-wide locks might have only a couple of feet to spare on either side.



Their ticklish task of squeezing through the gap without mishap offers a useful metaphor for Saudi Arabia's big problem in trying to manage oil prices -- except, in Saudi Arabia's case, it's more like steering a tanker through the canal wearing a blindfold, and with a mutinous crew.



The canal, in this case, is a range of oil prices; specifically, the range above which U.S. shale frackers let loose and below which they go into hibernation."



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