Saudi Arabia Prepares for 1-2 Years of Low Oil Prices
Saudi Arabia is privately advising investors and analysts to dig in for up to a year or two of low oil prices, according to an exclusive report on the Reuters news service.
Based on discussions over the last week in New York, “the Saudis appear to be betting lower prices—which could strain the finances of some members of the Organization of the Petroleum Exporting Countries—will be necessary to pave the way for higher revenue in the medium term, by curbing new investment and further increases in supply from places like the U.S. shale patch or ultra-deepwater,” Reuters reports.
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While some OPEC members, including Venezuela, want oil pegged above $100 per barrel, the Saudis seem prepared to accepted prices as low as $80 in a bid to protect their future market share. (h/t to Politico Morning Energy for pointing us to this story)