This article appeared online at TheNewAmerican.com on Friday, August 7, 2015:
In an astonishing admission that the Saudis have gambled with a bet that is now going sour, the Saudi Arabia Monetary Agency (the country’s central bank) reported:
It is becoming apparent that non-OPEC producers [in the United States] are not as responsive to low oil prices as had been thought, at least in the short run.
The main impact has been [for U.S. producers] to cut back on developmental drilling of new oil wells, rather than slowing the flow of oil from existing wells.
This [strategy to break U.S. producers] requires more patience.
But patience will last only as long as their foreign reserves of cash, and Saudi Arabia’s reserves (immense though they be) are dwindling rapidly. They peaked at $737 billion in August of 2014. In May of this year, they were down to