Making the Case for A Saudi Oil Production Cut

Oil prices are crushed, and the only country that can change oil market direction is Saudi Arabia. The case for a production cut is compelling, especially given that the Saudis have already achieved most of their economic objectives in regaining market share in crude, petroleum products, NGLs and petrochemicals. Any political objectives are almost impossible to achieve, specifically in regard to Iran and Russia. If Saudi Arabia does not cut oil production, it loses the strategic advantage of its spare capacity in the short term. In the mid and long terms, it loses its ability to control the oil market, while its economy deteriorates.