Wednesday , November 6 2024
Home / Mosler Economics / Saudi production

Saudi production

Summary:
The Saudis post prices and let their clients buy all they want at the posted prices. So their policy has been to discount the price of their oil vs benchmarks until their sales increase to meet their production capacity, which is reportedly 12 million bpd. That means the price goes low enough to cause other suppliers to cut back, such as US shale producers, which translates into higher Saudi sales and output. Or demand has to increase. Seems they haven’t made much progress so far, as the discounting policy continues:

Topics:
WARREN MOSLER considers the following as important:

This could be interesting, too:

Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.

Peter Radford writes AJR, Nobel, and prompt engineering

Lars Pålsson Syll writes Central bank independence — a convenient illusion

Eric Kramer writes What if Trump wins?

The Saudis post prices and let their clients buy all they want at the posted prices.

So their policy has been to discount the price of their oil vs benchmarks until their sales increase to meet their production capacity, which is reportedly 12 million bpd.

That means the price goes low enough to cause other suppliers to cut back, such as US shale producers, which translates into higher Saudi sales and output. Or demand has to increase.

Seems they haven’t made much progress so far, as the discounting policy continues:

Saudi production

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *