(Bloomberg) -- Three months after Saudi Arabia made clear it was going to let oil prices keep tumbling, the strategy is showing signs of working. U.S. drillers are idling rigs at a record pace, gutting investment plans and laying off thousands of workers.

Those steps highlight how the Saudi-led OPEC decision on Nov. 27 to maintain output levels and protect its market share is having the desired effect -- pushing prices down so far that they threaten to curb output in the U.S. and other non-OPEC countries. Saudi Arabia, the most powerful member of the Organization of Petroleum Exporting Countries, will maintain that tack when the group next meets in June, according to some of the world’s biggest banks.

The strategy “is working,” Francisco Blanch, head of commodities research at Bank of America Corp. in New York said by phone. “It is having the effect that we would expect, which is a decline in investment and ultimately supply, and somewhat higher demand. We think this change is for good.”

The number of rigs drilling for oil in the U.S. dropped by 37 last week to 1,019, the fewest since July 2011, data from Baker Hughes Inc. showed Feb. 20. Since Dec. 5, a total of 556 have been taken out of service. Oil explorers including Royal Dutch Shell Plc and Chevron Corp. have announced spending cuts of almost $50 billion since Nov. 1.

http://www.bloomberg.com/news/articles/2015-02-27/saudis-bold-gambit-paying-off-just-three-months-later-energy

Sadly, we still seriously lack the credibility to influence events @ OPEC now, ceremonial titles notwithstanding. Great deal of mess needs clearing @ home first.

http://www.economist.com/news/business-and-finance/21645086-nigeria-wants-opec-cut-oil-production-its-pleas-are-unlikely-be-heard-oily-mess

Areacode213:
Sadly, we still seriously lack the credibility to influence events @ OPEC now, ceremonial titles notwithstanding. Great deal of mess need clearing @ home first.

http://www.economist.com/news/business-and-finance/21645086-nigeria-wants-opec-cut-oil-production-its-pleas-are-unlikely-be-heard-oily-mess

Exactly we don't have that kind of relationship with these nations. Every nation strive to manage her situation independently or form alliance with global power for some leverages. This is what we don't have, no nation is interested in us because we are not bringing anything to the table apart from exporting and endless corruptions. No long term strategy, look at Saudi, they were able to protect their market share by thinking of themselves first.

See my country.