As a leading producer, pumping nearly 10 million barrels of oil a day, Saudi Arabia has outsize influence in the oil markets. And so far, the crude powerhouse has indicated it’s willing to ride out lower prices so as to avoid losing customers to US producers or other competitors. It’s a strategy of maintaining market share until the price of oil rises again.
Other less stable members of the Organization of Petroleum Exporting Countries (OPEC) reject Saudi Arabia’s strategy. Venezuela, for example, would rather cut production than take a reduced price for its oil.
