Brent Scowcroft Center Resident Senior Fellow Robert Manning writes for the Los Angeles Times on the recent trend of falling oil prices:
The recent drop in world oil prices — from more than $100 a barrel in June to about $80 a barrel now — will benefit the global economy, American consumers and a beleaguered U.S. foreign policy. And there are reasons to think oil could remain in the $75-to-$95 range for the next two years.
But it’s important to understand why oil is suddenly cheaper, and to consider what international ramifications the price drop will have.
One reason for the plunge is the global economic slowdown, and another factor is the surge in U.S. production from the “shale revolution.” But the biggest force driving it is that OPEC’s largest producer, Saudi Arabia, which pumps 9.7 million barrels a day, has made it clear that it can live with lower prices.
What are the Saudis up to?