Saudi Aramco’s Breakeven Oil Price Is Higher Than Expected

The implications of this news are that we will likely never again see an extended period of time with world oil prices below $45, because OPEC will have to take action at that point to prop up prices as the cartel did in 2016. Otherwise, they will quickly find themselves in deep financial trouble, unable to balance government budgets.

So, if you do see oil prices dip back down to that level, it’s definitely time to buy. Unless, of course, demand for oil has peaked and is on the decline. But that’s an argument for a different column.

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.