SAUDI PLAYING VS
Oil prices have fallen by over 20% in the last couple of months. Brent is currently trading $30 below its summer spike to $115 per barrel and many are left wondering what the Saudis are playing at. Based on conventional wisdom, past moves and motives, Saudi Arabia should lower production to stem the oil price decline.
Yet there is nothing conventional about what we are witnessing in the market. The world's largest net importer of crude oil is now China, a crown the US was not unhappy to give up earlier this year. Rising domestic production has meant the US is buying less from the global market leaving China with more clout and negotiating leverage. Worse still, Chinese demand…
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