RE: Oil price15 Mar 2020 10:03
Conventional economics would suggest that as global oil markets become increasing competitive, the oil price should tend towards the cost of producing the marginal barrel of oil. Estimates by Rystad Energy suggest that, in 2017, the average total cost of oil produced by the five major Middle-Eastern oil producers (Saudi Arabia, UAE, Iran, Iraq and Kuwait), who account for around 30% of world production, was less than $10. Likewise, Rystad estimate that around 40% of the world’s oil supplies in 2017 were produced at an average cost of less than $15 per barrel. So less than $15