Monday, December 15, 2014

Oil: The Battle For Market Share & The Saudi's 1985 Playbook

http://www.zerohedge.com/news/2014-12-15/oil-battle-market-share-saudis-1985-playbook

In 1985, the Saudis chose volume over price to defend their market share against new production from the North Sea, as well as cheating/discounting from other OPEC members in a period of weak demand. The Saudis had warned the world of their intentions, but many thought “it was merely an elaborate warning designed to scare other OPEC countries and restore discipline.” The parallels with today’s market structure are hard to miss, and the Saudi’s essential playbook remains the same...

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