| The Saudi oil minister Ali Al Naimi noted this week that the kingdom’s production in March reached 10.3 million barrels per day (bpd). This is 700,000 bpd more than in December, when the kingdom announced that it would not cut production to support prices. Most of the output gain has come in just the past month.
For the kingdom to refuse a production cut is one matter. But ramping up crude supply to the market, at prices well below global marginal cost, is another. Why has Saudi Arabia chosen this strategy? There are two competing explanations...............................................Full Article: Source
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