Why Saudi Arabia's Oil Price War May Backfire

Saudi Arabia is offering aggressive discounting on its oil exports and planning to sharply increase volumes in April in the wake of its failure to agree with Russia on a path forward for OPEC+ production restraint. This move will damage the finances of oil exporters lacking diversified economies, but it is not likely that either the Saudis or the Russians will capitulate in the next few months. The result will be rapidly rising oil inventories and weak prices....