After launching ill-conceived war in Yemen, Saudis now realize their oil price strategy has also been ill-conceived
As I argued on Al-Jazeera the other day, one really has to wonder and worry: Does the Saudi royal faily have the maturity and capacity to be an effective actor in the region?
“If the aim was to choke the US shale industry, the Saudis have misjudged badly, just as they misjudged the growing shale threat at every stage for eight years. “It is becoming apparent that non-OPEC producers are not as responsive to low oil prices as had been thought, at least in the short-run,” said the Saudi central bank in its latest stability report.
“The main impact has been to cut back on developmental drilling of new oil wells, rather than slowing the flow of oil from existing wells. This requires more patience,” it said.
One Saudi expert was blunter. “The policy hasn’t worked and it will never work,” he said.”