Saudis Go Back to the Future to Take on U.S. Shale Rivals – Bloomberg.
The Saudi oil minister’s visit to Venezuelathis week is also a trip through time.
Flash back to December 1998 whenSaudi Arabia looked to its fellow OPEC member for help lifting oil prices from about $10 a barrel.
Back then, the Saudis were defending their dominance in the global oil market from new suppliers in Latin America. Now the desert kingdom is cutting prices to the U.S. to contend with upstart shale producers. To win the showdown, the Saudis are trying to bring OPEC’s weaker members in line before the Nov. 27 meeting of the organization, said Seth Kleinman, head of European energy research at Citigroup Inc. in London.
“Shale is in the Saudis’ sights,” Kleinman said by e-mail. “It’s going to be shale or it’s going to be OPEC.”
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