How does saudi arabia expect to profit from this oil overproduction? Surely they understand other countries will recover. What are they looking to accomplish in the short and long term?
Put companies out of business. Force other companies to sell or idle assets. Prevent investment in the O&G sector basically to prevent a quick ramp-up of production.
Possibly to hurt ISIS which is actually a threat to the kingdom.
Also this all could be at the direction of the US in order to put a hurting on the Ruskies.
I've wondered this myself, they must have some more obscure geopolitical goal in mind, I doubt it's business related
Possibly they are trying to force the US and Russia out of the mid east (by tanking their economies so much they can't afford to stay) so they can once again be the biggest dick in the region
1) Saudi Arabia did not produce more in 2015 than it did in 2014. Their production reminded exactly the same, but demand plummeted particularly from China and the Eurozone.
2) They want to completely fuck over Russia/Iran and anybody else who gets in their way.
Iran is going from selling no oil to selling a massive stockpile plus whatever they digup using their cheap af labour. Not exactly stop coing it to them, but then again arabs were always pretty retarded.
Sticking it to them* god dammit autocorrect. Fuck touchscreens i'll buy the next smartphone with touch interface and a keyboard
What does it have to do with Saudi Arabia? Everybody is pumping oil at record production, what exactly do you expect to happen? Technology coupled with slowing economies is the root of it. Saudis can't "fix" this, only capitulation can.