Saudi Arabia is struggling to boost oil prices with production cuts and may soon make a dramatic reversal aimed at the US, according to energy expert Paul Sankey.
In an interview with Business Insider, he said Saudi Arabia may pivot to ramping up production to flush the market with a flood of supply in the first half of 2024. And that’s not to target emerging producers like Guyana or Brazil.
“You’ve got to attack the guy that’s making the marginal decision to drill or not — and that guy is Mr. Permian Basin,” Sankey said, referring to the US shale epicenter.
He later added, “I think to be specific, it’s a market share war.”
Saudi can and sometimes will play the market share card but all that oil will still be under the Permian Basin when prices come back up.