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Saudi Arabia still has the cheapest oil production costs in the world at $8.98/barrel (https://en.wikipedia.org/wiki/Price_of_oil#Comparative_cost_of_production
by jobu 6y ago
Saudi Arabia still has the cheapest oil production costs in the world at $8.98/barrel (https://en.wikipedia.org/wiki/Price_of_oil#Comparative_cost_of_production https://en.wikipedia.org/wiki/Price_of_oil#Comparative_cost_...)
They probably aren't making enough right now to pay for all of their commitments, but they definitely aren't losing money and they can likely borrow in the short term.
- koheripbal 6y agoNot to mention they just had an IPO on their state oil company and raised a shot load of money.
- deleted 6y ago[deleted]
- lozaning 6y agoI thought that had been called off no?
- beervirus 6y agoThey wound up doing a limited sale to local investors. It has been suggested that there was some "influence" applied to the investors to put the price where it needed to be instead of at the purely market price.
- chasd00 6y agoIt's not that they are losing money on production, the state budget is in the red with a price less than about $80/bbl https://www.reuters.com/article/us-saudi-economy-budget/saudi-arabia-has-asked-state-agencies-to-implement-big-budget-cuts-sources-idUSKBN20Y0QA https://www.reuters.com/article/us-saudi-economy-budget/saud...
- puranjay 6y agoOil in most countries pays the producers and some subsidies to farmers, truckers, etc. Oil in Saudi Arabia pays the entire country $8.98 might be the breakeven price for Saudi Aramco, but for the country, the breakeven point is, iirc, $80/barrel