Macrosnap Saudi oil strategy?

  • Oil price has more than halved in the last year, so as OPEC cartel leader, one would expect Saudi Arabia to cut output (and hence force the price up).
  • But instead they have chosen to maintain supply, despite the financial pain this is causing domestically.
  • Strategy is to prioritise its own long-term market share, and perhaps to inflict pain on fellow OPEC members Iran and Russia (who Saudi Arabia believes have destructive geopolitical ambitions in the Middle East).
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