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Saudi's Other Warning Makes Oil Traders Sweat After Doha Failure

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After his comments thwarted supply negotiations in Doha, oil traders are weighing another implied warning from the Saudi deputy crown prince: the threat of an intensifying clash with Iran over market share.

It was Mohammed Bin Salman’s repeated assertions that the kingdom wouldn’t join an output freeze without Iran that derailed talks between 16 producing countries on April 17. In interviews with Bloomberg News, the prince cautioned that if other producers increased output, Saudi Arabia could respond in kind. Iran is restoring exports after international sanctions over its nuclear program were lifted in January.

http://www.bloomberg.com/news/articles/2016-04-18/saudi-s-other-warning-makes-oil-traders-sweat-after-doha-failure

I think that in the longer term Iran will win out over Saudi.

Just about any extra oil sales Iran makes will bring in a profit that they haven't had in years whereas Saudi is already hurting at the low prices that they instigated themselves.

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