When it comes to oil, Saudi Arabia has long been king. The desert monarchy sits on the world's largest proven reserves. Though its position as the world's top producer was eclipsed by the United States in the past year, it remains the world's top exporter. That's made it the fulcrum on which the oil markets have pivoted for decades, cutting or increasing production as needed to balance supply and demand. But this time, with a flood of oil being pumped into the market and softer demand, the Saudis are sitting on their hands as prices slump. Crude futures have plunged from more than $100 a barrel in mid-2014 to barely $45 this week. That's led observers of the industry to scratch their heads. Some suggest it's a way to punish regional rival Iran, where the economy is already hamstrung by sanctions, or that it's a favor to longtime allies in Washington by putting the screws on an intransigent Russia and Venezuela, whose economies depend upon oil exports. Perhaps it's even a shot across the bow of American shale oil producers, the latest challenger to Riyadh's hold on supply.

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