https://www.rt.com/business/327324-saudi-arabia-budget-oil/

There is a bit of bad news for rubber molders that are reliant on the oil field industry for a large percentage of their sales revenue. OPEC and especially the Saudis are forecasting $29 per barrel oil prices for 2016.

Beginning around June of 2015, OPEC adopted the strategy of increasing their output to flood the market with oil and put the high-cost oil producing nations like the US out of the oil producing business. Many of the US oil producers have significantly higher costs associated with hydraulic fracking. The Saudis and other Arab nations believe that they can withstand the lower prices for much longer than debt-laden US companies can. For at least the next two years, rubber molders like Santa Fe Rubber Products will be revamping their sales strategies to increase their sales portfolios in industries other than oil.

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