Oil Price: Why this world need higher oil prices
Posted: Tue Apr 28, 2020 3:17 pm
The price of oil is down big this week because a large hedge fund has been forced to liquidate the near-term NYMEX WTI futures contracts. See previous post.
Here is just one reason that WTI under $40/bbl is an unsustainable price:
Bloomberg: "Saudi Arabia needs oil prices to trade above $80 per barrel for it to balance its budget. The Kingdom's GDP could shrink more than 3 percent this year and the government budget deficit could be 15 percent of GDP. Read more: https://www.bloomberg.com/news/articles ... -oil-crash
Here is just one reason that WTI under $40/bbl is an unsustainable price:
Bloomberg: "Saudi Arabia needs oil prices to trade above $80 per barrel for it to balance its budget. The Kingdom's GDP could shrink more than 3 percent this year and the government budget deficit could be 15 percent of GDP. Read more: https://www.bloomberg.com/news/articles ... -oil-crash