“Saudi Arabia is in a difficult balancing act.
It needs oil prices to stay strong enough to fill its cash coffers but not so strong as to encourage its oil customers to seek alternative sources of energy, HSBC analyst Peter Hitchens writes in a commentary obtained by CNBC.
That implies an oil price of $90 a barrel for Brent crude, which would represent a decline of 21 percent from Thursday’s level of $114. ”
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THE HORROR
Balancing Act: Act like you can pump more of the same quality crude while you are drilling for lower quality.