Oil price would need to be more than five times higher for Iran to hit breakeven
The latest oil price rally is easing pressure on Gulf exporters to balance their books – but it is a long way from doing that for Iran, Algeria and Libya.
Oil prices rose on Thursday on a weaker dollar and as fears of rising inflation in the US eased.
As Brent trades around $69-a-barrel, the outlook for the region’s big exporters is improving.
However with a fiscal breakeven price estimated by the IMF to be more than $395 per barrel, Iran still needs the current price to be more than five times higher.
Algeria comes next with an estimated 2021 breakeven price of about $135, followed by Libya which would need the price to be above $124, according to IMF estimates.
Oil is on the upswing after OPEC+, the alliance of oil producers led by Saudi Arabia and Russia, last week agreed to keep in place most of the production curbs that have been credited with the recent surge in the price of crude on global markets.
Saudi Arabia “rolled over” for another month the big 1 million barrel reduction that has kept markets balanced since the start of the year.
Source: Arab News