OPEC Leaves Production Unchanged

This story is a bit old, by a day or so.

It is my worldview that the current price of oil is about $10 - $20 less than what Saudi Arabia would like (whether it's WTI or Brent).

So, let's take that as the starting point.

If prices are $10 to $20 lower than what the Saudis would like, why would they not advocate for decreased production? Some possible answers:

• their real target is Iran
• they are concerned about global recession driven by high oil prices; they are huge investors, also
• there is simply not enough new data for them to change course -- it was just easier to do "nothing" at this point in time, than to do "something"
• they agree with Boone Pickens: the supply/demand delta is tighter than folks realize
• the supply/demand delta is tighter than folks realize, and could get tighter with Iranian sanctions
• their target is alternative energy sources (renewables, Canada, unconventional/tight oil)
• it's the eurozone: the eurozone is under great stress; it is in Saudi's investing interests to not make things worse for the EU

If this were a poll, I don't know which way I would vote, but this is how I would rack and stack those choices (top to bottom, most likely to least likely):

• there is simply not enough new data for them to change course -- it was just easier to do "nothing" at this point in time, than to do "something"
• it's the eurozone: the eurozone is under great stress; it is in Saudi's investing interests to not make things worse for the EU
• their real target is Iran
• they are concerned about global recession driven by high oil prices; they are huge investors, also
• they agree with Boone Pickens: the supply/demand delta is tighter than folks realize
• the supply/demand delta is tighter than folks realize, and could get tighter with Iranian sanctions
  
• their target is alternative energy sources (renewables, Canada, unconventional/tight oil) 

Having said that, I think the 7th listed possibility is collateral damage. Whether that is Saudi's goal or not, they sure don't mind.