Saudi's Response to Oil Price Drop

Following last week's OPEC meeting, the Saudi cabinet released a statement, "The cabinet stressed that the kingdom's oil policy is emanating from economic fundamentals, to achieve the economic interests of the kingdom on the short and long term, and the interests of producers and consumers." Other OPEC members noted that "OPEC's decision is not beneficial to all members." Other sources, PBS Business News, December 1 said that Saudi Arabia can make a profit at production costs of $10/barrel.