Saudi Arabia may soon have to use its last weapon in an all out war against American Frackers, and the Iranian and Russian oil producers: Break the riyal peg to the US dollar. For almost three years, the Kingdom has been using a conventional weapon for fighting the oil war: raising oil output. The logic of using this conventional strategy was quite simple: let higher output crush oil prices, and the Kingdom’santagonists along the way, as I discussed in a previous piece here . Now there’s plenty of evidence that this weapon has hit the target. US oil rigs have been shutting down one after another,and weak American frackers have been going out of business or striving to cope with falling revenues and piles of debt. Company Qtrly Revenue Growth Total Debt Output Cut Devon Energy -30.40% $13.14B 10% Marathon Oil -50.40 $7.28B 10% EOG Resources, Inc. -48.20 $6.66B […]