Saudi Arabia Is Losing Price War

A recent editorial notes that OPEC’s decision in November 2014 to increase oil production to put U.S. shale producers, has not worked as planned. Although many U.S. companies have been impacted, the overall shale industry in America has adapted and continued to produce. In moves to stem the loss to Saudi’s economy, “Last week Saudi Arabia issued $5.3 billion in government bonds. The amount is tiny, but it was Riyadh’s first time to borrow cash since 2007. The Saudi government also liquidated $60 billion in foreign assets in the first half of 2015 and brought the proceeds home.”