Oil prices ended down 7% last week and are lower this year-to-date, despite Middle East tensions.
Oil prices have been depressed this year because China — the world's largest oil importer — is in a prolonged economic downturn.
Last year, they each accounted for 11% of the world's oil supply.
This means that Saudi Arabia is looking to corner a larger market share instead of targeting higher profit margins by restricting output.
Advertisement"But the problem is when oil prices spike, it sends oil companies searching for temporarily profitable oil," he added, referring to the US shale boom as the most recent example.
Persons:
—, Abishur Prakash, Prakash, Anton Siluanov, Matthew Huber, we're, Huber
Organizations:
Service, —, Financial Times, International Energy Agency, Brent, US West Texas, Syracuse University, Saudi, Trump, OPEC
Locations:
Saudi Arabia, Russia, China, Toronto, Israel, Iran, Europe, OPEC