[KoRn]

This is all strategic.

The big guns in OPEC are looking to kill off the smaller producing entities in the US and other places by lowering the prices.

The smaller guys must have oil at $90-$100 to be profitable. OPEC can withstand some temporary pain while they go bankrupt, and they will be the last one standing when the dust clears. When you are a big monopoly, you have flexibility when it comes to how you wield your power.

[JRandomFreeper]

The problem that OPEC has is that they may run a few producers out of business, but that oil is still there in the ground.

They can't destroy that, and be the last ones standing.

/johnny

[SaxxonWoods]

“The smaller guys must have oil at $90-$100 to be profitable.”

Not true, 80% of shale is profitable at around $60 a barrel.

Also, people keep forgetting that the wells already drilled cost very little to produce. It’s only drilling that becomes risky at lower prices. New drills will slow, leading to higher prices later.

It’s a self-correcting system, the current alarmism is silly. It’s the Saudis who are running scared, not the USA.

Enjoy the temporarily lower prices, they won’t last more than a year or so. This is a great problem to have.

[Bshaw]

Equilibrium is the power controlling oil prices. The U.S. can put them in check with shale, and they can no longer gouge.