Libya's Breakeven Price For Oil Is Literally Off The Chart
REUTERS/Finbarr O'Reilly
Earlier, we highlighted charts from Citi which showed the breakeven prices for oil projects in both the US shale basin and around the world.
But the big decline in oil also has big ramifications on national budgets for a number of major oil producing nations.
According to the following chart from Citi's Ed Morse number of major oil exporters including Saudi Arabia and Russia have seen oil prices tumble well below their breakeven price this year.
Morse highlighted this chart in a November 10 note that predicted OPEC would likely not announce a production cut at its meeting, which was held yesterday.
Among the factors Morse cited for why a production cut was unlikely is that Saudi Arabia has enough cash on hand to withstand the decline in oil prices so far.
And following OPEC's announcement on Thursday, Russian oil CEO Igor Sechin said that Russia could withstand a drop in crude prices to $60 a barrel.
Russia is not an OPEC member.
And so as oil prices continue to tumble a number of countries that rely on oil exports to balance their budget will certainly miss this goal in 2014, a few countries really stand out.
Iraq, Iran, Algeria, and Yemen never saw oil prices get above their breakeven price for more than just a few days in 2014.
But Libya looks like it never had a chance.
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