This is a fascinating read about the oil market that took me a while to really get, but it finally makes sense.
Tl;dr The Saudis are selling all the oil they can now because they’re worried that oil is quickly becoming obsolete. They’d rather sell at a drastic discount than be left with oceans of oil but no buyers.
Most analysts believe Saudi Arabia refuses to cut production because it wants to shake out its higher-cost competitors or because it wants to punish Iran and Russia. There may be some truth in those theories, writes Elias Hinckley, strategic advisor and head of the energy practice with international law firm Sullivan and Worcester, but they miss the deeper motivation of the Saudis. Saudi Arabia, he says, sees the end of the Oil Age on the horizon and understands that a great deal of global fossil fuel reserves will have to stay underground to avoid catastrophic global warming. “That’s why it has opened the valves on the carbon asset bubble.”