4 ms·
Waging a war by not supporting artificially low quotas enacted by a cartel? That makes no sense
by Riod 11y ago
Waging a war by not supporting artificially low quotas enacted by a cartel? That makes no sense
- varjag 11y agoOPEC without SA is irrelevant, it's like NAFTA without the USA. Saudi wage the price war on emergent players (frackling and shale extractors), disregarding the wishes of lesser market players like Venezuela.
- Riod 11y agoIt's not a price war if you're reverting to a competitive market after many years of running a cartel. Unless you dislike a competitive market? The Saudis realise that setting a high price allows for artifically high shale investment which would eventually disenfranchise the Saudis. They rather take some pain now than sponsor their own demise.
- varjag 11y agoMy point was Saudi are not some victims of cartel policies. They run it (or ruin it) at their own discretion as the largest member by far. Cartel quotes were never binding them in any practical way.