Don't know if it's the only reason, but from what I've been reading OPEC is keeping prices low to put pressure on all the new American shale oil producers and drive them out of business. We need domestic oil price protection to take care of our own producers. It's pathetic how many trillions of dollars have flowed out of the U.S. to OPEC countries during my lifetime!
Ken
There is lots of Truth to that. Saudi and UAE both want price per barrel low to put American oil and gas out of business. We were on track to be the largest driller. Takes 75 or so a barrel for most American oil to be profitable.
OIL and gas price is not set by the companies, but rather the commodities market. So Saudi and the rest of OPEC have not slowed production, they are keeping it high, even though demand has gone way down. The old supply and demand, not much demand now world wide, and much more supply now.
This is really hurting Russia bad now. China demand has really slowed. The effect of this glut of oil is global.
Guess the drill baby drill worked, to well.