Saudi Arabia is in a stronger position than a number of its fellow oil producers because it is a low-cost producer and can withstand lower prices as it has stockpiled revenues from previous peaks in the oil price in the last five years.
But other major oil producers—both inside and outside OPEC—have been hard hit by lower oil revenues. Investment in U.S. shale oil is starting to look threatened, and economic growth forecasts in countries like Russia have been hastily revised lower.
Venezuela's President, Nicolas Maduro, said on Monday that the country's petroleum export price had halved during the second half of 2014 to $48, Reuters reported. But rather than blame its fellow OPEC member Saudi for failing to back a producing cut, Maduro blamed the oil price decline on the U.S., saying the country was trying to hurt Russia and Venezuela.
Read MoreSaudis hit 'panicbutton' at $40 oil: Energy CEO
For many OPEC members, oil prices have now fallen through the floor at which production costs make economic sense, Graham-Wood stressed.
"Whilst it is true that Venezuela 'needs' $160 (to break-even) or Iran 'needs' $120 oil, and many other countries much higher than the current levels, there is nothing that they can do as long as the Saudis stand firm," he said.
"The best that all the other world producers from Russia through Canada, the U.S., Mexico, Latin America, Africa and the rest of OPEC can hope for is that by mid-2015, enough oil has come off the market. And combined with a pick-up in demand, that the equation looks a bit better."