Saudi Arabia faces a stark choice: either let markets crush American frackers or watch American frackers crush markets. After testing the upper twenties for a couple times, oil prices have staged a huge rally lately, trading above the $40 mark. Energy companies have rallied along, helping major Wall Street averages race towards new highs. But the oil rally may not last for too long. Saudi Arabia won’t let it last, in our opinion. Once, Saudi Arabia liked higher oil prices. The higher the better, as it will bring more revenues to the royal coffers. That was back in the old good days when Saudi Arabia was the world’s largest oil producer and OPEC’s boss. Nowadays, Saudi Arabia still likes high oil prices. But not too high, not that much above $40 that is. Why? Because that’s the threshold that keeps American frackers alive, […]