$70 Crude Oil is a Thing of the Past

• Posted by Robert Sinn
• on January 11th, 2012

A great graphic from Der Spiegel this morning on the break-even price that oil producing states such as Saudi Arabia need to balance their budgets:

 

Did you know that Greece obtains 34.7% while Italy gets 13.3% of its oil imports from Iran? Many believe that the Saudis can make up for any oil supply losses from an Iranian embargo, however, any additional Saudi crude output is likely to be of the heavy sour variety which the market can’t use as readily. The most interesting part of the above graphic is the fact that Saudi Arabia needs $80+ crude oil prices, that’s a good number to keep in mind in the future (we probably won’t be seeing $CL_F in the 70s anytime soon). Click over to read the rest: Iran and the West Rediscover Oil as Weapon

 

 

 

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