Producer’s fiscal break-even a key factor in setting oil prices

oil prices, depending on the fiscal deficits at various oil producers, range between $47 and $216 per barrel. Venezuela has the highest fiscal breakeven at $216, while the lowest is for Qatar at $27. For the largest oil producer Saudi Arabia and Russia, these levels are $88 and $53, respectively. The fiscal breakeven prices for the Opec are $10-15 per barrel higher than those for private oil companies.

purely from the cost standpoint, several fields in Opec nations are profitable even if prices were to plunge below $20 per barrel.


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