Who will blink first? I think the Saudis will.
America (and Europe) likes its cheap oil and they also like the fact that its their own oil. Saudi Arabia can manipulate the price of oil as low as it wants, but if they force the US shale producers out of business which is their intension then the banks will foreclose on the loans they have invested in the shale producers and they will in effect own the shale. They will then sell it on cheaply to the Supermajors (ExxonMobile, Chevron, Shell and BP) and none of them are not short of money or are dependent on shale to make a profit. It will be the Saudi's and OPEC's worst nightmare, a bunch of super sized American and British oil companies with huge oil reserves in America, and guess were all the oil at your local gas station will be coming from!
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