Doyou belive that the Saudi’s do not fix the price of oil by their published production quota? They openly state when the price is getting too low that they will reduce production to jack the price back up, and the market obliges. If the US could supply the same production they could say that they will produce zero and the market would not oblige.
The price of oil is set by its availability now, because of monopoly. A healthy market price is set by demand. Seems the same but it actually is quite different. If it was set by demand, the price of oil would hover just over the price of production. It does not.
The price of oil is not fixed, it constantly moves. The OPEC production ceilings quit being issued in 2007. They still talk about a target, but do not hold/penalize countries to a set amount.
They openly state when the price is getting too low that they will reduce production to jack the price back up, and the market obliges.
I would say the market responds to change in supply and demand, basic econ 101.
If the US could supply the same production they could say that they will produce zero and the market would not oblige.
The US has constantly supplied all it could and the market reflects that. While we don't shut down production from established wells, when the price is high we drill more, and when it is low we drill. Wells constantly decline in production so there is a lot of moving targets.
The price of oil is set by its availability now, because of monopoly.
The price of oil is not set, it constantly responds to constantly changing market conditions. What price would you base your -10¢? The moment you offer oil for sale at below market prices, you change the market price.
A healthy market price is set by demand.
All commodity markets have their price set by supply and demand. A monopoly in that market is part of the supply, regardless if you like it or not.