First of all, the industrial system is huge and it is difficult to schedule flexibly. You know, Saudi Arabia's economy basically depends on the oil industry, so China has built many oil facilities. The corresponding interest groups, workers and all kinds of equipment are huge. If you want to reduce production, you will inevitably reduce production. If we reduce output, we won't need so much labor. Without labor, most people will lose their jobs. Unemployment will cause domestic unrest and add a lot of uncertainty to society. If the crisis does break out, it will take a very high price to calm down at that time. So this calculation is much better than blindly reducing oil production, even if it doesn't make money or even lose money.
The second is that artificial regulation is difficult to keep up with market rules. You know, the rise and fall of oil prices are ultimately regulated by the invisible hand of the market. It is difficult for a country's political system to grasp the economic trend, let alone adjust its oil production in advance according to the economic trend. So the only thing we can do is to regulate as much as possible when a certain situation happens. But the usual experience is that the more human participation, the worse the effect of reversing the economy. So now many governments have adopted a wait-and-see attitude. Because if we enlarge the time scale, we will see that the economic trend is always cyclical, and this general trend cannot be artificially changed.
Third, it is related to the particularity of the oil industry. Many people are easily misunderstood because they don't understand the structure and internal processes of the oil industry. You know, oil is not a steamed bread roll produced by our small workshop, and the output can be controlled at any time as needed. Oil is also an important product in the futures market, and many countries have prepared a large amount of oil in Saudi Arabia in advance. The biggest feature of futures is that it is not affected by the external environment and only delivered at the original contract price. Therefore, if Saudi Arabia cuts production, it is likely that many orders will not be met, resulting in greater default losses.