[mmichaels1970]

OPEC can selectively lower prices to bankrupt competition in start-up phase.

When threat subsides, then they can raise prices again.

I tend to agree. But I'd hold out hope that when the fracking companies are forced to halt production, they throw what resources remain into making extraction even more economical, thereby forcing OPEC to go even lower the next time. Eventually, if you technologically advance far enough, it begins to hurt OPEC more than it hurts you...that's how you win, no?

[Triple]

Yes - in a fair market, low cost production wins. (for commodities especially)

A problem occurs when private enterprise competes with state sponsored/owned companies. The state can, for sustained periods, make decisions that public companies cannot, because they are not held to a ‘smart business - worth my investment’ standard. There are no shareholders and markets there to make sure that the business decisions make sense for the business.

The Saudis have that “advantage” of making anti-competitive decisions without stock market or governmental oversight token them honest.