Saudi Arabia has cut its October selling prices as the global economy's strength of recovery remains weak. How would a lower selling price but falling demand affect industries worldwide?

Hi there,

Lower selling price, would help Saudi Arabia maintain its market share. Demand has been falling as there is a huge stall in the economy. Traditional industries that relied alot on oil (industries, aerospace), have either reduced or no output.

The biggest industry affected, would be the US oil industry. Saudi still has dominance over this continent, while US is still isolated without pipelines into the biggest market captive market. Industries that are unable to buy/stockpile, will defintely pass on holding physical inventory. However for companies with huge purchasing power, they might hedge with futures contracts.

Hope i was able to she some insight!