Persian Gulf Countries have law production costs and huge resources and they will go with $80-90 p/b

4 november 2014 | Rossiyskaya Gazeta

Oil keeps falling in price. November 4 during the US trading it cost nearly $80 p/b but then got back to $83. Keeping law costs on oil may be profitable for Organisation of Petroleum Exporting Countries leaders, consider experts.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

If oil cost is around $90 p/b half of the US shale production will be unprofitable, recently said OPEC' s Secretary General Abdallah el-Badri. The North American shale gale was the main reason for current price drop, which affected all raw produce exporters.
"Persian Gulf Countries have law production costs and huge resources. Saudi Arabia budget is tally when oil costs $80-90 p/b, by various estimates, and actual environment works for Saudi Arabians", commented the situation to "Rossiyskaya Gazeta" the Head of Department for Strategic Studies in Energy Alexander Kurdin.
During the nearest oil cartel meeting which will take place on November 27, Persian Gulf Monarchies may agree that the oil output should not be cut. That will keep law prices and give them a chance to get lliberal share in market. On the face of it, oil output reduction and prices $100 p/b appear to be the only right choice, noted Mr. Kurdin.
OPEC Decree will definitely influence oil prices, consider journalists of "Rossiyskaya Gazeta". 12 countries involved into the cartel own 40% of global oil market. Since 2008 OPEC's self-quota is 30 millions of barrels of oil per day.