GREY:CLLZF - Post by User
Comment by
ThaNcydeRon Oct 29, 2014 12:58pm
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Post# 23072647
RE:Don't panic, OPEC secretary general says after oil price fal
RE:Don't panic, OPEC secretary general says after oil price fal An IMF Gulf Cooperation Council report from October of last year indicates that at their baseline price of just over $80 per barrel in 2018 the budget of Saudi Arabia would be balanced.
Anything below that and the country would be in deficit, meaning that some of those social programs essential to preserving stability would be in danger.
Of course it could be that the global economy, and therefore demand for oil will collapse completely and no amount of production cuts by Saudi Arabia and other OPEC nations will make any difference, but that looks unlikely. It is far more likely that things will stabilize and, faced with cuts to social programs that they cannot afford to make, Saudi Arabia will lead the call for OPEC production cuts. That won’t be enough to drive oil back up to over $100 in a hurry, but it should stop the freefall.
I also came across this article last night. I will find the source and link.Prices wont stay low for long!