Saudi Arabia’s oil strategy has not worked for a number of reasons. The strategy has been to retain
control of the global oil market by forcing marginal producers to cut production and preferably close, while at the same time pushing up the cost of capital for these producers. According to Energy and Carbon, this strategy is ineffective because U.S. producers have been very slow to cut production, countries like Iraq are coming back from a decade of internal turmoil, and Saudi Arabia is currently under mounting pressure from low oil prices in OPEC countries.
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