Saudi’s only need a $30-40/Bbl price to support their budgets and think they are going to continue teach lesson to Iran & Venezuela who need $90-100/Bbl to meet their budgets. Several analysts thought that OPEC has become non-functional anyway since all volume cuts to enforce directional moves have always fallen on Saudi’s while all the others cheat on targets to max profit.
Last t’me Saudi’s decide to teach the cheaters (& loudmouths like Iran/Venezuela this time) the price dropped into the teen’s. It will be good opportunity for independents & non-integrated refineries but not as much for upstream heavy oil companies ……. UNLESS they use it as opportun’ty to pick up competitors reserves at a firesale price as they did in mergers 90’s where oil was purchased at less than $6/Bbl equivalent and refining assets were at $0.10-$0.40 per $1.0 replacement/invested value.