Saudi Oil Price - Is it Backfiring?

Saudi Arabia, the world top crude oil exporter, was the prime reason for the drop in oil prices in 2014-2015. Their decision to increase production to starve out U. S. shale oil production caused the dramatic fall in oil prices. However a report from the Saudi Central Bank indicates the plan isn't working the way Saudi officials expected, "It is becoming apparent that non-OPEC producers are not as responsive to low oil prices as had been thought, at least in the short-run. The main impact has been to cut back on developmental drilling of new oil wells, rather than slowing the flow of oil from existing wells." The Saudi plan was to freeze out U.S. shale oil and control the world refineries. The Saudi's flooded the market with low sulfur diesel and caused "Asian refining margins to fall drastically." The result, Asian markets are reducing their imports from Saudi Arabia, significantly reducing the cash flow to Saudi Arabia. Saudi Arabia’s policy simply hasn’t worked.