Saudi Arabia has probably spent around $100 billion of its foreign reserves by now to prosecute its war against American shale and other low-cost oil producers. The oil kingdom’s decision one year ago not to cut production to support oil prices has driven the price of both Brent crude and West Texas Intermediate down below $50 a barrel, but Saudi Arabia will have to spend a lot more to win the battle. Now, there are signs that Saudi Arabia is preparing to double down on its strategy with debt. The Financial Times reports that Saudi Arabia is getting ready to borrow funds in the international bond market to further finance its big effort to protect its market share in the oil world and make life impossible for U.S. shale. Saudi Arabia needs the money to keep its expensive social contract going in the face of rising budget deficits that […]