| Traditionally, lowering prices of Crude oil lead to a supply response from major OPEC producer, Saudi Arabia. However, this time around, it hasn't done so but raised production since June.
With an annual budget of $230 bn and a running surplus of $ 40 bn, Saudi Arabia can easily cope with $85 bn Crude Oil for years, according to an assessment by Bank of America-Merrill Lynch (BofAML). However, the strategy carries risks including a ramp up in global demand and further turmoil in oil producing countries as prices decline...............................................Full Article: Source
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