Low oil prices haven’t been great for countries that heavily rely on the commodity.
Governments in oil-producing states need oil’s price to stay above a certain price so that they can meet their spending commitments.
In a note to clients, Deutsche Bank’s strategist Michael Hsueh shared a chart that shows the price per barrel that the major OPEC and non-OPEC countries need to meet their national budgets.
Libya needs the highest price, above $US180/barrel, to break even. Qatar can get by with oil below $US80/barrel. Russia and Saudi Arabia’s break-even prices are both around $US105/barrel, and Iran’s is neary $US130.
Meanwhile, Brent Crude is currently trading around $US56/barrel — far below what these major producers would ideally like to see.