zerohedge.com / by Tyler Durden on 01/11/2015 16:30
Speaking to his favorite money-honey, billionaire Saudi Prince Alwaleed bin Talal told Maria Bartiromo that the negative impact of a 50% decline in oil has been wide and deep. As USA Today reports, the prince of the Saudi royal family said that while he disagrees with the government on most aspects, he agreed with their decision on keeping production where it is, adding that “if supply stays where it is, and demand remains weak, you better believe it is gonna go down more. I’m sure we’re never going to see $100 anymore… oil above $100 is artificial. It’s not correct.“ On the theory that the US and the Saudis have agreed to keep prices low to pressure Russia, the prince exclaimed, that is “baloney and rubbish,” adding that, “Saudi Arabia and Russia are in bed together here… both being hurt simultaneously.”
Exceprted from USA Today,
Q: Can you explain Saudi Arabia’s strategy in terms of not cutting oil production?
READ MOREA: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.