The old fox Al Naimi had it all figured out. Let prices drop would put shale under strain and also help the market to recover as cheaper crude would give many countries and industries breathing space to retool and expand. But the old man was removed by a much less patient creed in the Kingdom that needed action right then and there. They have cut supply which leads to higher prices which in turn saved shale from the grinder and also put a dampener on the expansionist urges of oil consumers. OPEC still talk of a fair price for their oil when there is no fair price – its all in the eye of the beholder. Whats you deem fair might be exorbitant to me. only free markets can determine a fair price – as whatever it finds is fair by default. Don’t like what it is? Hard luck.
The Organization of Petroleum Exporting Countries’ decision to extend production curbs by another nine months shows just how concerned the group and allied oil producers are about a slowdown in energy demand.