Is Saudi Arabia Preparing for Another Oil Price War?

US benchmark WTI crude is down nearly 4% as Saudi Arabia reports emerge that not only can the Saudis sustain today’s low oil prices, but output increases are likely to be announced next week, for June output, sources speaking to both Reuters and Bloomberg have indicated.  On Wednesday, Reuters cited five unnamed sources as saying that the Saudis have no intention of boosting oil markets with further supply cuts, as Riyadh’s budget can tolerate sustained low prices. On the contrary, sources are suggesting that the Saudis could start…