Saudi Arabia’s strategy to drive U.S. shale out of the energy market has failed.
“The new OPEC deal to cut oil output – the cartel’s first since 2008 – amounts to nothing less than Saudi Arabia’s surrender to the power of American shale,” John Hulsman wrote for UK business daily City AM on Dec. 5.
OPEC as a whole agreed to cut production by 1.2 million barrels per day (bpd), with Saudi agreeing to cut 500,000 bpd. With the cut, OPEC now accounts for less than half of all energy output in the world. Continue reading