Quote:
Originally Posted by GP_Matt
This seems to be a debate about which benefit the Saudis are enjoying the most.
- Lower prices hurt Russia
- Lower prices hurt Iran
- Lower prices reduce exploration and development spending which leads to
- higher prices in the long run
- Lower prices prevent export pipelines in Alberta from being built
- Lower prices prevent Russian pipelines to China from being built
- Lower prices prevent/delay a switch to renewable products
- Lower prices encourage consumption and could lead to an expanded market in the future
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A good list, but I think you're missing the simplest reason...to help out their largest customer, China, who could use some low prices to get growth ramped back up. China will be buying their oil for a long time and won't forget it.
All in all, low prices ticks so many boxes for the Saudis in one simple tolerable move.