The Saudi’s have been pumping oil out of the ground come hell or high water, behaving as an insolvent merchant might. The market suspected that this was part of a ploy to drive more expensive producers like the US shale producers out of business. US rig counts are down but the Saudi’s continue to pump furiously and the oil price has not recovered.
The Saudi’s may have found a way to higher oil prices without sacrificing revenues. Start a fight with Iran.