Saudi Arabia now believes oil prices could stabilize at around $60 a barrel, a level both it and other Gulf producers believe they could withstand, according to people familiar with the situation citied in a UPI report.
“Saudi Arabia seeks to maintain its long-term market share, even if the price of oil stays temporarily low, its oil minister, Ali al-Naimi said, adding, “the market will eventually stabilize itself.” The plan is to suffer lower prices to force high-cost oil producers not in OPEC, like U.S. shale oil companies, to cut back production, putting less oil on the market by the second half of 2015,” the UPI reports.
