Quote:
Originally Posted by SebC
It's Saudi Arabia pushing low prices for strategic reasons (though possibly miscalculating), USA's contribution to low prices is just business acting in its own self-interest.
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Saudi arabia has been hit hard by the slump in oil prices. It's hit their cash reserves hard. Almost all of their national spending is from oil revenue.
Saudi Arabia recently released a 2015 budget showing a $38.6 billion deficit, its largest ever, projecting a significant decrease in oil-generated revenue. But Saudi Arabia has accumulated $750 billion in foreign currency reserves and has signaled it is willing to spend its cash hoard and put it on the line in this global oil battle.
http://www.forbes.com/sites/nathanva...-oil-below-54/