Pressure to reduce oil production increased.
Major producers’ GDP is built upon oil. Iran has oil at 65% of its GDP. Kuwait, which has already lowered production, is at 60% of its GDP. Saudi Arabia at 50%. Saudi Arabia assumed $60 per barrel when outlining its 2020 budget. Shortfalls of cash are going to hurt economies around the world.
The IMF has put together a 2020 price per barrel breakeven point for these nations:
- Saudi Arabia at $76.10
- UAE at $69.10
- Kuwait at $61.10
- Iraq at $60.04
- Nigeria at $144.00
- Algeria at $109
- Libya at $100.00
- Angola at $55.00
- Iran at $389.00
The coronavirus pandemic has crushed global oil demand.
This post from cnbc.com was the source of this post.