by 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: Uncategorized
This could be interesting, too:
John Quiggin writes Dispensing with the US-centric financial system
John Quiggin writes How to dispense with Trump’s US
John Quiggin writes Trump has thrown out the global economic playbook. It’s time for Australia to write its own rules
tom writes Germany’s election & why it is important to understand the Ukraine War
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:
