Saudi Arabia has been willing and able to weather an extended period of low oil prices in order to squeeze out higher cost producers in the US, while perhaps also gaining some satisfaction from the pain being inflicted on Iran and Russia. But with prices now having fallen well below the levels needed to choke off new investment elsewhere and the apparent free-fall causing turmoil in the financial markets of friends and foes alike, the case for at least a token cut in Saudi production is building.
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