[Goose]

So, what you are saying is that Saudi Arabia could singlehandedly end the war by opening the taps wide, driving the price of oil low enough to bankrupt Russia.  I agree.  But they would bankrupt themselves too.


BC

Fortunately they don't have to go to that extreme to accomplish the mission. Russia needs to sell a certain volume of unrefined oil to keep their economy going. It isn't necessary to drive their sales to zero, but only to a level where they can't make ends meet. There aren't far from there already due to existing sanctions. Their sovereign wealth funds are pretty close to exhaustion. Losing India as a customer without replacement would probably be enough. India will pay the market rate, just not to Russia. Saudi actually increases sales and profit that way. They would like to make more profit per unit volume, but they can't do that as long as Russia is selling everything they possibly can. Getting Russia back inside the OPEC+ limits would be a win for Saudi and the rest of the oil producing nations.

[Goose]

So, what you are saying is that Saudi Arabia could singlehandedly end the war by opening the taps wide, driving the price of oil low enough to bankrupt Russia.  I agree.  But they would bankrupt themselves too.


BC

Fortunately they don't have to go to that extreme to accomplish the mission. Russia needs to sell a certain volume of unrefined oil to keep their economy going. It isn't necessary to drive their sales to zero, but only to a level where they can't make ends meet. There aren't far from there already due to existing sanctions. Their sovereign wealth funds are pretty close to exhaustion. Losing India as a customer without replacement would probably be enough. India will pay the market rate, just not to Russia. Saudi actually increases sales and profit that way. They would like to make more profit per unit volume, but they can't do that as long as Russia is selling everything they possibly can. Getting Russia back inside the OPEC+ limits would be a win for Saudi and the rest of the oil producing nations.