According to Bloomberg, the world’s major oil producers need higher oil prices. However, the required price level differs from country to country. That’s why Bloomberg experts decided to calculate the prices at which OPEC and Russia will be able to balance their budgets. The research was based on IMF figures as well as the data provided by several major investment banks.
In particular, Kuwait needs at least $47,8 per barrel to balance the budget this year. For those of you who don’t know, Kuwait is among those OPEC nations together with Saudi Arabia who support the idea of capping oil production to favor higher oil prices.
The United Arab Emirates, Qatar, and Saudi Arabia need $58,6/b, $62,1/b, and $79,7/b respectively. By the way, in 2015, Saudi Arabia’s budget deficit reached the highest level since 1991 amid ultra-low oil prices. In particular, the deficit increased all the way up to $97 billion or 15% of the national GDP.
For Iran to balance its budget, $55,3/b is needed. Still, Iran is more interested in winning back the market share lost after the USA and its Western allies imposed sanctions on Iran. That’s why the Iranian government seems determined to sacrifice short-term profits for the benefit of longer-term market share. That’s why Iran doesn’t want to cap its oil production even though the rest of the OPEC nations are determined to do so.
Iran is another OPEC member asking for exceptions since crude oil is the major source of income for the country waging war on terrorists. Iraq needs $58.3/b to balance its budget.
The list of other countries and their levels:
Angola - $66,06/b.
Algeria - $90,6/b.
Ecuador - $104,69/b.
Venezuela - $117,5/b.
Nigeria - $85,4/b.
Libya - $216,5/b.
As for Russia, $69/b is needed to balance the budget.
