Impending Oil Price War: Saudi Arabia's Market Share Strategy Threatens US
The recent underwhelming OPEC+ meeting revealed dissent within the group about deeper cuts and production quotas, putting pressure on the alliance's efforts to maintain oil prices above $80 per barrel. With record-high U.S. crude oil production continuing to soar, OPEC+ and Saudi Arabia face the challenge of countering this surge and preventing it from undermining their price stabilization efforts. One potential solution for Saudi Arabia could be to flood the market with crude, sinking oil prices below the U.S. profitability threshold. However, the lack of a unanimous group-wide cut and the growing non-OPEC+ production pose risks to OPEC+ unity and oil prices.