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Keyword: floodingoilmarket

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  • Saudi Arabia faces existential crisis after its misjudged gamble on oil

    08/11/2015 2:07:11 PM PDT · by rickmichaels · 33 replies
    Financial Post ^ | August 11, 2015 | Ambrose Evans Pritchard
    If the oil futures market is correct, Saudi Arabia will run into trouble within two years. It will be in existential crisis by the end of the decade. The contract price of U.S. crude for delivery in December 2020 is currently US$62.05, implying a drastic change in the economic landscape for the Middle East and petro-states. The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market to drive out rivals, boosting output to 10.6m barrels a day (b/d) into the teeth of the downturn. Bank of America says the Organization...