Saudi Arabia’s Flawed National Economic Vision

Since 2014 Saudi Arabia has pursued a strategy to maintain market share in an oversupplied oil market, refusing to cut production as oil prices have plummeted. But for various reasons, the sheikhs in Riyadh have gotten a bigger decline in prices than they bargained for. Among the factors keeping prices low have been falling energy demand in China, new sources of energy from US shale producers and Iran (after the nuclear deal), and prospects for lower demand generally because of a sluggish world

Source: Peterson Institute (PIIE)