[jshorty]

I'm curious about their long-term outlook. My understanding is that OPEC counties are currently desperate enough for money that they can't agree to limit output, thereby forcing the price further down. Anyone have better insight here?

[mars4rp]

Saudies want Iran to cut production too, but Iran was forced to cut production because of sanctions and they missed lots of revenue when oil price was high. Iran is not going to cut production or cap it. Saudies have 2 bad choices let the prices fall or stay the same or let cut production and let Iran get more revenue and lose market share to her.

[salimmadjd]

Iran is trying to get back to the production quotas of pre-sanction period. Saudis do not want that (they opposed the Iran deal).

They also want to prevent any investment in Iran oil sector by lower the lure of potential windfall from foreign investors until the next US administration is in power to potentially reverse Obama's policy.

[chatmasta]

I've heard two narratives, that being one of them. The other is that they're keeping output artificially high to lower the price of oil in hopes of "pricing out" alternative sources like shale.

[woodpanel]

Well at least in the short-term: Due to the oil-price shock Saudi Arabia's state earnings turned negative and at the current burn-rate are supposed to erase it's monetary assets rather in months than in years.

[Aelinsaar]

I think maybe that's why they're trying to get a ton of money, and as others are saying, exit.