The Saudis Blink: Going to Cut Production After all

Well time for those oil stocks to head higher.

The decision at this week’s meeting of the Organization of Petroleum Exporting Countries in Algiers to cut production was necessitated by Saudi Arabia’s tattered finances. The kingdom has the highest budget deficit among the world’s 20 biggest economies, it’s enduring a delay in its first international bond issue and now faces fresh legal uncertainty as the U.S. Congress voted Wednesday to allow Americans to sue the country for its involvement in 9/11.

I think they are tired of running a deficit to try to put those US shale companies out of business. Market share is worthless if it leads you to financial ruin in the meantime.