the bottom line is that saudi makes more money at $60 than $100

at $100 everyone can produce profitably and Saudi's market share goes down quickly. besides saudi has to cut production in order to keep rice artificially high, while other OPEC members cheat and non-OPEC members are not obligated to do so.

at $60 many high-cost producers will shut down over time and new exploration and drilling will stall. saudi's market share will go up and saudi will make more revenues overall. yes $90 is the budget break-even point for Saudi. however that is a static view keeping output level constant.

i feel the saudi is determined to teach high cost producers a lesson. they will not stop until there is a chill down the spine and blood everywhere. they are willing to burn their petrodollar reserve in the short term to deter new producers for a while.

russia provides just the right excuse and O8 is looking away.

just my 2c