Stubborn Saudi sees crude exports rise in October to a four-month high

The most important story of the year? Surely the continued glutting of the oil market by the Saudis. It’s had catastrophic effect on many nations, especially those emerging economies that had banked their present and also future wealth on the oil they could extract and sell at ever rising costs.

Why has this received such little press? Yes, we know what is going on. But why? An internal power play by the new king? An effort to vanquish the US shale oil industry (and also the Canadian tar sands)? To show just how much strength the Saudis have? What is happening to oil prices of course benefits the commuter and many others dependent on oil for energy, so it’s hard to complain about. One doesn’t get on a soapbox to declaim against cheap gas; one doesn’t demonize the oil barons for putting money in the consumer’s pocket and effectively giving them all the raise their bosses refused.

But this continued–and even intensifying action is extraordinary and will have serious consequences; it already does. And the effects of the market’s decimation are arguably worse than the opposite, an oil embargo. At least, sharp, sustained falls have been held at least contributory to the fall of governments and empires.

 

Saudi Arabia continued to squeeze non-OPEC producers by increasing the crude oil supply glut, pumping out 10 million barrels daily in October.

Source: Stubborn Saudi sees crude exports rise in October to a four-month high