I think that answer is all over the news. The Saudis are purposely not cutting supply in order to put the US and Canadian non-traditional oil producers out of business.
The Saudis are not undercutting their own price BTW. Their cost to produce is still below $40/barrel (depending on which field of course). The same is true for many fields in the US as well, but not for Bakken. And certainly not for Canadian tar sand oil.
Originally Posted By: cjcride
Good Point. How did the people at the helms of the oil companies and OPEC allow such a glut of oil? Who undercuts the price of their own product to this degree?
The Saudis are not undercutting their own price BTW. Their cost to produce is still below $40/barrel (depending on which field of course). The same is true for many fields in the US as well, but not for Bakken. And certainly not for Canadian tar sand oil.
Originally Posted By: cjcride
Good Point. How did the people at the helms of the oil companies and OPEC allow such a glut of oil? Who undercuts the price of their own product to this degree?