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ChristianKl comments on Open thread, Jan. 18 - Jan. 24, 2016 - Less Wrong Discussion
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Saudi Arabia flooded the market in order to reduce the price, in order to combat the benefit to Iran of the raising of sanctions.
Their oil production didn't rise that much. They didn't really flood the market. They mainly decided not to cut their production.
And there is a good reason for this decision. Saudi Arabia tried cutting production in the '80s to lift prices, and it was disastrous for them. Here's a blog post with nice graphs showing what happened ...
Understanding Saudi Oil Policy: The Lessons of ‘79