The original plan for the Saudis was to pump enough oil into the market to drop the price per barrel to the point where the shale oil companies wouldn't be able to survive and would shut down leaving oil to the Opec countries to control and set pricing.
Their plan backfired to the extent that the Saudis did not count on these companies being able to survive the oil prices at these levels for this duration.
The effects of low oil prices have now begun to have a direct negative effect on the economies of some of the OPEC countries and they are leaning on the Saudis to drop production and help get the price of oil in line back above at least $50/barrel.
IF they cut production, we should be ready for oil near $60 again this year. If they dont, there is no telling how many countries will fall into disarray at the hands of the Saudi's shennanigans with production and then anything goes in the middle east. Those people are savages on their best days. Economic havoc would most likely start another war. Than oil can go up to anywhere including over $100/barrel again.
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