Yesterday I posted this: “Privately, Saudis tell oil market: get used to lower prices”
It quoted a Reuters article, and today Reuters has more, saying:
- Saudi Arabia is not trying to push oil prices down, an oil source said, but is prepared to let the market find its floor and tolerate lower prices until others in OPEC commit to action.
- It has already cut selling prices to retain Asian customers.
- Their message is “don’t expect us to somehow shoulder the responsibility for managing the whole oil market,” said Sadad al-Husseini, a former top executive at state-run Saudi Aramco.
- Brent crude oil traded below $88 a barrel on Monday, its lowest in almost four years, as traders realize that Saudi Arabia is in no hurry to curb the emerging oil glut.
Today’s article from Reuters is here, and is a useful read: Facing new oil glut, Saudis avoid 1980s mistakes to halt price slide
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Hmmmm.
If the price of oil falls further, and/or remains low its going to be a big positive for the economy as business and households face lower costs.
