As part of measures to survive the global economic recession caused by the long fall in oil prices, Deloitte in a report recently called “Oil and Gas Reality Check 2015”, which says that most OPEC (Organization of Petroleum Exporting Countries) require oil prices of about $100 per barrel to efficiently balance their domestic budgets. The report “if prices remain low for an extended period of time, some of the OPEC nations risk travelling a slippery slope towards greater social unrest”.
Members of the oil cart
el estimating about 12, of which Nigeria has the fourth largest breakeven oil price at $122 after Libya ($184), Ecuador ($145) and Iran ($131). Kuwait has the lowest at $54, followed by Qatar ($60), United Arab Emirates ($77), Angola ($98) and Saudi Arabia ($106).
When the foreign currency reserves of Iraq, Iran and Nigeria were calculated it was less than &200bn. The report further gave reasons for the state of the reserves stating that; Iraq must continue to divert resources to its fight with ISIS (Islamic State); Iran has lost oil revenues due to Western banking sanctions imposed in response to its nuclear programme; and Nigeria’s oil production continue to fall under the assault of theft and lack of investment.”
Despite the optimism that global oil prices is increasing and stabilizing, Brent crude the global bench mark had on Monday dropped below the $60 per barrel threshold to around $57 for the first time in three months.
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