The price of a commodity is the cost of marginal production. Saudi oil is cheap to produce but there isn't enough to supply the world. Before the war the ma

The price of a commodity is the cost of marginal production. Saudi oil is cheap to produce but there isn't enough to supply the world. Before the war the marginal production was Canadian tar sands, which costs about $60 a barrel to produce. There are massive reservoirs of expensive oil in Canada and Venezuela. If Canada and Venezuela limit output then the price will go above their cost of production. If not, it will settle at their costs. ($80). Kind of moot since it will take well over a decade for their production to ramp high enough to satisfy current world demand. The best for for lower prices in the shorter term is likely lower demand through renewable alternatives.