RE:RE:Don't Worry About the Price of OilSaudi reasoning not so daft. When the price climbs later this year it will have taken nearly 2 years of rig cuts to impact the price. It will actually take longer then 2 years to get production back up due to sector debt and the view that the oil price rise will be brief, therefore restraing investment. Once the pricer has been up for a year and it dawns on the sector that high prices are here to stay it will take another 2 or three years to get production back up - production may never catch up.
The Saudi's are set to 'have their cake and eat it' - keeping market share and years of very high prices. History will show they knew what they were doing I suspect. The only real threat to this medium term strategy is the likley global recession from late 2017/early 2018 onwards - all depends on how high the oil price goes!!
Doug