Saudi sights set on US shale at crucial OPEC meeting

[UglyGreed]

Riyadh (AFP) - OPEC's biggest crude producer Saudi Arabia will have its sights set on the upstart US shale oil business at a crucial cartel meeting to debate possible output cuts on Thursday.

Analysts say the kingdom is content to see shale oil producers -- and even some members of the cartel -- suffer from low prices and will resist pressure to reduce output and shore up the cost of oil.

A barrel of crude has plunged by about one third in value since June to around $80 in an increasingly competitive market.

Saudi Oil Minister Ali al-Naimi was silent about his government's intentions Monday as he arrived in Vienna ahead of the OPEC gathering.


http://news.yahoo.com/saudi-sights-set-us-shale-crucial-opec-meeting-030251315.html

[Esse Quam Videri]

1. This is potentially good news

The only negative of these lower prices is that it may drive new car buyers away from more fuel efficient vehicles. Other than that, I hope the lower prices put a world of hurt on the companies that are ravaging the North American countryside.

[FLPanhandle]

2. The downside is low oil prices makes green energy alternatives less attractive economically.

So they are squashing shale oil and alternative energy companies at the same time.

Good for them, bad for the planet in the long run.

[TransitJohn]

3. No surprise

Saudi money funds lots of anti-fracking activism. They want all the money.