Quote:
Originally Posted by bizaro86
Their actions seem to suggest they think they'll have trouble selling the crude they can produce. They just broke up their Motiva joint venture with Shell, and kept the largest refinery from it instead of the higher margin chemicals business. Apparently they tried to buy the other refineries as well but Shell wouldn't sell. That suggests to me they're worried about finding a home for the crude they'll produce, not that they're trying to buy cheap barrels.
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Yah, that's probably why I haven't come across any similar sentiments
I am positive those running Saudi oil are smarter than me, but the math doesn't align with all the reasons for them continuing to max production. The two predominant reasons are;
1) They want to knock out high cost producers to get market share
2) They don't believe the market for oil is long for this world and they want to get what they can.
Neither of those reasons make long term sense to me. Producing 10MM bbls/day at $100 is waaaayyy better than producing 12MM bbls/day at $40 (very rough numbers)
So, I came up with my theory
