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Ahlanganisia wrote:

Since the Saudis are the only ones capable at pumping the volume necessary to keep the prices this low, I'm not sure what you're implying. I think the most probable reason is to bankrupt the American and Canadian drillers like Korouse said, and also to keep Iran from regaining their pre-1979 market share.

"This a complicated question, but it boils down to the simple economics of supply and demand.

United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping at record levels." - Ny times

And yes the Saudi economy is really suffering.