How Saudi Arabia Will Influence the Oil Market to Benefit their Economy

How Saudi Arabia Will Influence the Oil Market to Benefit their Economy

by summersd@oilprice.com (Dave Summers)

Stuart Staniford has been watching the decline in oil prices. He has then commented that, given the Saudi need for income to hold off “Arab Spring” dissatisfaction, they are unlikely to let prices fall too far, before cutting production, since even a 10% reduction in output could raise prices 20%, thereby resolving possible income concerns. This well reflects the role of the Texas Railroad Commission back when, which controlled US production in order to sustain an acceptable price for oil. But that role collapsed when overall US production…Read more...