THE WAR OF ALL AGAINST THE SALAFI:

Depending on your political preference, you either have to feel sorry for Saudi Arabia or savor the moment . [...]

In a fever-pitched attempt to protect market share, particularly in Asia and Europe, they kept pumping and pumping, so much that they reached new output levels in July. The Saudis had also hoped to shut out as much U.S. shale oil production as possible, but that also backfired.

U.S. production did indeed drop, but its coming back. According to a Goldman Sachs report in September, U.S. shale oil production could increase as much as 700,00 barrels per day (bpd) by the end of next year - effectively wiping out the previous two-plus years of losses. Others, however, see U.S. shale oil coming back, but at a slower pace.

The results of the Saudi pump-at-all-costs decision has indeed been cataclysmic for the global oil industry, but also for Saudi Arabia itself, with problems ranging from historically high budgets deficits (nearly US$100 billion last year) to being forced to put in place its first ever and politically unpopular austerity measures.

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