OPEC taking an immense political gamble

OPEC taking an immense political gamble. Saudi Arabia and the core Opec states are taking an immense political gamble by letting crude oil prices crash to $66 a barrel, if their aim is to shake out the weakest shale producers in the US. A deep slump in prices might equally heighten turmoil across the broader Middle East and boomerang against the Gulf's petro-sheikhdoms before it inflicts a knock-out blow on US rivals. Chris Skrebowski, former editor of Petroleum Review, said the Saudis want to cut the annual growth rate of US shale output from 1m barrels per day (bpd) to 500,000 bpd to bring the market closer to balance. They want to unnerve the shale oil model and undermine financial confidence. However, Opec has misjudged the threat. (VIEW LINK)