Why the Saudi's are holding firm on oil

Why the Saudi's are holding firm on oil. Bloomberg writes Saudi officials remain singed by the experience of the 1980s, when, in the face of a non-OPEC supply surge, Saudi Arabia cut production -- yet was still unable to bolster price. Looking at the changing dynamics of the oil market, particularly in light of the boom in U.S. shale production, Saudi officials are concerned about a repeat performance of that 1980s dynamic. Even before Abdullah's death, these same Saudi decision-makers almost surely worried that a unilateral cut in production, with no resulting boost to price, would suggest that Saudi Arabia had lost control of the oil market. Better not to try, than to try and not succeed. Nothing would project weakness more definitively. Now, as a new king assumes the thrown, this logic holds more than ever. Full article: (VIEW LINK)