Providence Resources - OPEC Production cut - Saudi Arabia is not going...

Saudi Arabia is not going to continue pumping 1m barrels more and thus suffering huge losses on potential profits. Saudi is not a benevolent state looking to offer cheap oil to the whole World. Saudi needs oil to rise to enable it to balance Its budget and keep its population happy with subventions. Saudi Arabia has virtually no extra capacity to produce oil. Saudi Arabia Will do a Deal with Iran as it is in both their interests and deals Will be reached where proxy wars with Iran are being fought. Believe that Saudi Will look to move into refining business. Frackers, Canadian tar, deep sea oil all damaged as breakeven cost of production too high. Theses Will be the marginal producers but investors and oil companies will be wary of These projects for some time to come. World demand rising and supply will be reined in By falling project investment or agreement to limit production By Opec, Russia etc