STOCK MARKET WATCH -- Friday, 24 July 2015

[Demeter]

27. The Crafty Saudis: How They’re Sustaining Low Oil Prices

http://www.economonitor.com/policiesofscale/2015/07/21/the-crafty-saudis-how-theyre-sustaining-low-oil-prices/

The oil market continues to be oversupplied and barrel prices remain low. It’s mostly the Saudis’ doing, and its part of their strategy to replace OPEC with a new Global Corporate Oil Board. Their newest tactic is a boost in domestic refining and growth in their refined product exports. Where does everyone else stand, and where will this go?



In what seems to be becoming an on-going series on Policies of Scale, I’m writing again about Saudi Arabia’s long game strategy in maintaining its dominance over the global oil market. Part 1 explored the Kingdom’s overall strategy of creating a new “Global Corporate Oil Board” to replace the antiquated OPEC

http://www.economonitor.com/policiesofscale/2015/04/07/the-saudi-re-engineering-of-the-global-corporate-oil-board/

, and Part 2 gave an update on their progress.

http://www.economonitor.com/policiesofscale/2015/05/20/battle-royale-saudi-v-american-oil/

This piece focuses on a new tactic in the Saudi strategy: shifting some crude from export to refineries. This especially shrewd development is helping keep the Royal Family out front of market developments and in control of the emerging Global Corporate Oil Board...