Oil prices are low and they do not look like they are going to bounce back anytime soon. The price of brent crude was around $115 a barrel in June. It now appears to have stabilised at roughly half its value, or about $60 a barrel.
There are some obvious winners and losers. Big oil consuming countries like the United States and China are buying oil at the lowest prices in years. But it is a different story for countries like Russia, Venezuela and Saudi Arabia. They all rely on oil revenue to balance their budgets.
As oil prices fell, many expected OPEC members to lower their production in an effort to boost prices – but they did not. And analysts now say it is part of a long-term strategy by OPEC’s most dominant member, Saudi Arabia, to keep its market share and push out competitors.
Join Inside Story as we take a look at how the world’s biggest oil producers are using low prices, to keep their domination of the market.
Presenter: Sami Zeidan