Investors keep hoping that the Saudis don't really know what they are doing. So far the Saudis appear to have the upper hand, and I'm guessing that those buying newly issued oil company shares these days are miscalculating once again.
Articles: Saudi Arabia (6)
Saudi Arabia is not trying to crush U.S. shale plays. Its oil-price war is with the investment banks and the stupid money they directed to fund the plays. It is also with the zero-interest rate economic conditions that made this possible.
It is popular these days to speculate about why Saudi Arabia cajoled its OPEC allies into maintaining oil production in the face of flagging world demand. Was the real reason for the decision to maintain production the desire to undermine rising U.S. tight oil production--which has now proven …
The world is in a dangerous place now. A large share of oil sellers need the revenue from oil sales.
It's likely that the Saudis are encouraging a fall in oil prices. In the face of what looks like declining demand, rather than cut production to maintain prices as they have done in the past, they've decided to maintain their market share worldwide by cutting prices.
The Saudi regime has long been considered a pillar of political stability in the Middle East, a country that commanded respect and prudence from all its neighbors. This is no longer true, and the first ones to recognize this are those who are important internal players in the regime. Today, …