Of course when it does, oil prices will crash just as they did in 1986 when the country finally abandoned fixed official selling prices. ADADDespite the risks, it’s time to admit that market management is failing, even though Saudi Arabia and it “allies” say that it isn’t. The average level of Saudi oil production in the first eight months of 2019 was the lowest since 2014 — even excluding the dip caused by the Sept. 14 attacks on the kingdom’s oil processing infrastructure. Saudi Arabia will learn to work with this over time, just as it did after 1986. If they are forced to cut, then Saudi Arabia will get the price support it craves, without having to lower its own output.

Source: Washington Post October 20, 2019 07:07 UTC