Oil wars: Saudi vs the world?

As global oil prices tumble, we ask why the country that is OPEC's kingpin is doing nothing to stop it.

There are winners and losers in every economic situation, but few have the impact of one involving oil. The price of Brent crude, which at one time priced 90 percent of the world's oil, has tumbled by one-fifth. And analysts believe the price could fall to as low as $60 a barrel.

Already at $80, it is a major adjustment for countries trying balance their budgets. And the question is not what, but who is driving oil prices, and what the fallout means for ordinary people and the global economy.

Many would expect Saudi Arabia to be defending higher prices, but that is not exactly the case. So why is Saudi doing this? And what will be the outcome for everyone else? The answer depends on where you are standing.

In Russia, the belief is that this is punishment for what has happened in Ukraine and for Russia's ongoing support of Syria's Bashar al-Assad. While in the shale fields of the United States, it is thought the Saudis are trying to maintain lucrative oil contracts with Asia, which would set back those US company attempts to get their export ban lifted by Washington. At $80 a barrel, US oil companies would need to shut down or cancel new shale projects.

For some perspective on the current situation, Hilda Mulock-Houwer, the global head of energy at KPMG, speaks to Counting the Cost about the different theories behind Saudi Arabia not defending higher oil prices and the impact on the global economy.

http://www.aljazeera.com/programmes/countingthecost/2014/10/oil-wars-saudi-vs-world-2014102414216788197.html