Saudi Arabia since the oil price rout has been pursuing overproduction strategy and to push prices to such extend that high cost producers are forced to get out of the market. However, situation might be getting tense even for Saudi Arabia, with its $700 billion rainy day fund, as speculations rose that it might have to drop its decade old peg to USD. Saudi Arabia, already announced deep spending cuts in this years' budget, however current level of oil price is clearly not enough.

Khalid al- Falih's latest comments at world economic forum at Davos may be indication of such. Chairman of state owned Saudi Aramco called $30/barrel oil price irrational told this won't last as many small producers facing financial difficulties. However, he stressed that world's largest exporter won't cut production unilaterally that would support high cost producers.

According to Mr. Khalid, Saudi Arabia is in much better position o weather current storm and longer outlook for oil is positive.

Mr. Khalid, Said Saudi Arabia has never taken up the role to support oil price but stand ready to cooperate if other OPEC members participate along with large outside producers such as Russia.

Since yesterday, dropping oil price has found temporary respite in European Central Bank (ECB) president Mario Draghi's comments over possibility of more stimulus.

Brent has sharply recovered since yesterday, now trading at $30.8/barrel.