[QUOTE=c.captain;151355]I don’t know, they can produce Saudi light sweet crude for only $10/bbl so even at $20 they make $$$ and then make up their deficits with taking all the money they’ve loaned out to the planet back. If they call in notes, holy Christ we are all in some serious deep doo doo![/QUOTE]
Reviving a dead thread here:
Thanks for the good reading. I could be wrong but I think there are two “break-even” prices: $10/bbl is from a production standpoint, meaning how much it cost to extract oil from the ground. Because OPEC nations fund their governments with oil exports, they have a much higher fiscal “break-even” price. I believe S.A. (and some other nations) need well over $100/bbl to keep their government budget from running a deficit. S.A. has a ton of cash in reserve so they can take the pain a little longer, or maybe a lot longer.
This might not be relevant. S.A. could not really care if they’re running a deficit. After all, the U.S. doesn’t seem to care.