Saudi Arabia has said that it will not cut its oil supply until its “rival” Iran does so.
Iran just entered the market after sanctions were lifted and says it has no plan to limit its export till it reaches its pre-sanction levels.
Saudi Prince Mohammed Bin Salman told Bloomberg that unless Iran reduces production Saudi won’t do so and the kingdom is ready to go the long haul. However speculators do not believe Saudi can continue at this level for long as it struggles with its economic commitments and adventures. 25% of Saudi Arabians live in slums.
Global oil prices dropped once again with the recent Saudi announcement. The kingdom has since November 2014 stopped limiting its oil export according to prior OPEC limitations and is producing at an all-time high of more than 10.5 million barrels a day, as much oil as it wants to flood the market and keep prices in the gutters.