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Harold Hamm: Saudis view US oil as economic threat

Harold Hamm: Saudis view US oil as economic threat

Billionaire oilman Harold Hamm told CNBC on Friday that OPEC has been trying for decades through price wars to crush U.S. crude production. "Sometimes they're successful. This time we hope they're not," he said.

The American shale oil boom is viewed by Saudi Arabia as an economic threat, the founder and chief of Continental Resources (NYSE: CLR) said in a " Squawk Box " interview. "I think the Saudis have made up their mind they're not going to bear the brunt of a cut, so they force everybody else to do it." As a result, Hamm argued the OPEC cartel-of which the Saudis are the largest producer-is "not very strong at all" nowadays.

But the fallout from Saudi Arabia's hard line on production has turned the Russian "ruble into rubble," while also putting the squeeze on U.S. producers, he said. "All we can do as a company is cutback and cut capex [capital expenditures]."

U.S. oil prices-measured as West Texas Intermediate crude-have fallen more than 50 percent since June. But WTI has a chance Friday on the last trading day of February to avoid an eighth straight monthly decline should crude settle higher. Prices were off to a strong start in early trading Friday. The number to watch is $48.24 a barrel-the settlement level on January's last trading day.




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