It can be agreed upon that oil prices are lower than expected for a variety of reasons. With that said, a few things come to the surface. Saudi Arabia has tried to hold onto their market share by aggressively overproducing in 2016. Their efforts did not work in the short term but may actually affect the industry in a large way for the long term. The OPEC strategy was to increase production levels to match rising competitors and to retain serious control over oil pricing and production.
Of course, this was met with some opposition. The opposition, imposed by a few neighboring countries, actually helped thwart Saudi Arabia for a time. The efforts of Nigeria and Algeria were not entirely ineffective. It helped to create the swing that ultimately manifested in weird and sporadic oil prices for 2016.
The above inner battles are somewhat over. At the very least, they have settled a bit. Saudi Arabia, for better or worse, has given up their position as exclusively an oil provider. The country is trying to privatize a large portion of their oil production in an effort to draw funds in less direct ways. It is actually a rather smart move. Saudi Arabia has depended entirely on oil to an almost absurd degree. If the country can wean itself off the oil dependence, in even a small way, it can settle into a more advantageous position.
Saudi Arabia pushed prices lower in 2016 with lower production. The backlash from Algeria and other countries through OPEC diminished the push from Saudi Arabia. The country, in response, settled back and began diminishing their resources to private marketplaces and funneled funds elsewhere. The result was a big up and down swing for 2016 that is certain to lead to a safe and comfortable 2017 for oil investors.
Shockingly, she said this in a special report that was meant to be a little more private than it actually was. The reveal showcased a serious amount of confidence in the industry for 2017 despite many investors frightened about the larger-than-life swings. It was a bold reveal about oil that may reflect big on the global climate right now.