Saudi Cuts the Price of Oil in Response to U.S. Production

In early October Saudi Arabia cut the price of oil it sells to the world market, bringing the international price to below $90. Saudi Arabia feels threatened by the huge surplus of oil produced in the U.S. even though very little of it is exported. The Saudis will sell larger volumes of oil regardless of falling prices, so that they can maintain their only source of revenue. Other OPEC nations are is the same situation and will follow Saudi's lead.  "OPEC might be a vilified organization in the media and by American politicians, but it’s the one organization that has actually put dollars into the coffers of U.S. oil drillers by maintaining a supply/demand balance through the years."