When will the oil war end?

How long can the vicious oilprice war between Saudi Arabia and Russia last? If history is any guide, the battle will be a long one. Riyadh has waged four price wars, including the current one, over the last 35 years. All of them lasted at least a year, and prices plunged at least 50 per cent. This time may be different, of course – there’s never been a demand shock so great at the same time as the supply shock. But the last wars are at least a guide to the pain thresholds of policymakers.Here’s how they played out: • Price War I: 13 months. In June 1985, at a meeting in Taif, Saudi Arabia, Kin…

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