Saudi Arabia`s Oil Strategy Is Failing

Matt Smith, Fuel Fix: Commentary: Saudi’s targeting of market share does not appear to be working

Thirty-four years ago today, Indiana Jones was the number one movie at the box office with ‘Raiders of The Lost Ark’. 1981 was also the year in which Beyoncé was born. These two reference points are just to highlight how long ago 1981 was (even if a swashbuckling Harrison Ford doesn’t seem that distant a memory). But while the world was a very different place back in 1981, one thing is the same now as it was then: the level of Saudi Arabian oil production.

According to OPEC data, Saudi oil production reached 10.3 million barrels per day in May, a level not seen since 1981. This data point is not all that unsurprising, given recent rumors and murmurs of a ‘price war‘ and the ‘targeting of market share‘ by OPEC’s leading producer.

WNU Editor: What is also raising red flags is the growing realization that the Iranians are about to return (in force) to international oil markets .... Oil market: The Iranians are coming (Al Jazeera).