By Michael McDonald
In the end, who will win the oil price battle, Saudi Arabia or US capitalism and shale producers? Probably both; US oil producers are taking unparalleled steps to lower their costs which will result in much more efficient operations in the end, similar to how US manufacturing came out of the Great Recession at high levels of productivity and ultimately profitability. By the same token, Saudi Arabia is the king of the oil markets for a reason – geologically it is essentially the perfect oil producer. The real losers in this fight are likely to be the other participants who have been trying to stay out of the conflict as much as possible. Other OPEC producing nations and even Russia are not as efficient as Saudi Arabia, nor as dynamic as US shale producers. And ultimately, they are likely to be the ones forced to give ground and cut production.