Will the Saudis take losses due to this move? Clearly, they will take losses. But Saudi was clear that 2.1 million bpd cut was not sufficient. It had to either go for 3.6 million bpd or flood the market with oil. Saudi Arabia still enjoys higher beak even levels compared to the US and Russia. Consequently, KSA announced its plan to raise oil production to around 12 million bpd. This crashed the price of oil by nearly 30% in a single day. Saudi Arabia had cut oil prices to as low as $30/bbl for some of its clients and promised much lower rates across Asia and Europe. The next step for Saudi Arabia is to impact the Russia monopoly over Europe in the oil game. Saudi Arabia would still incur losses at current prices. But with a forex chest of nearly $650 billion, it has the luxury of pursuing this price war for at least the next 2 years. The hope is that by then the oil demand from China will pick up.