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2015-01-06 13:15:00

SAUDI RISK STRATEGY

SAUDI RISK STRATEGY

Saudi Arabia has won the opening battle of its radical oil strategy by forcing prices lower. But the kingdom is about to enter into a dangerous new phase in its war to regain control of the world's oil market.

In November, Saudi succeeded in bullying the other members of the Organisation of Petroleum Exporting Countries (Opec) into continuing to pump their current quota of 30m barrels per day (bpd) as its first objective. The strategy born in the palaces of Riyadh has sparked the apparently desired oil price rout, which the kingdom's veteran oil minister Ali Naimi clearly believes is necessary to shut down the cartel's biggest rivals in Russia and the shale oil fields of Dakota.

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Tags: SAUDI, OIL, PRICES
Chronicle:
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