Photo: Gregory Bull/AP
Iran in order to balance its budget, enough $55 per barrel, Libya needs a price almost four times higher. Russia, according to experts, are satisfied with the price of $69 per barrel
The largest oil-producing countries of the world need different oil price to balance their budgets, and related disagreements about the need to reduce production and volume constraints, according to Bloomberg. The Agency, citing data from the International monetary Fund (IMF) and the estimates of the investment banks estimated at what price of oil the OPEC countries and Russia will be able to balance their budgets.
In particular, to Kuwait, to cope with the budget deficit in 2016, enough average price of $47,8 per barrel, writes Bloomberg. That’s less than the cost of a barrel of Brent crude on the ICE futures exchange on Monday afternoon ($48,05). The Kuwaiti authorities are traditionally in favor of limiting oil production, supporting their allies from Saudi Arabia.
The United Arab Emirates (UAE) to balance the budget you need to price of a barrel rose to $58,6 for barrel, Qatar — to $62.1, and Saudi Arabia — up to $79,7, writes Bloomberg, citing data from the IMF. In 2015 the budget deficit in Saudi Arabia due to low oil prices peaked in 1991, reaching $97 billion, or 15% of GDP.
Iran, in order to balance its budget price of $55,3 per barrel. But Iran is more interested in the return of their share in the world oil market, which had declined during the imposed US and EU sanctions, and therefore seeks to enable him to continue to increase production.
Exceptions to system restrictions please OPEC and Iraqi authorities are pointing to the injustice of the demands to cut oil production, which is the main source of income for the country at war with extremists of the “Islamic state” (organization banned in Russia). According to the IMF, Iraq to balance the budget should rise in world oil prices to $58,3 per barrel.
Angola to defeat the deficiency of the necessary $price of 66.06 per barrel, follows from the calculations of UBS Group AG. While prices remain low, Angola may not increase the volume of its production to the level of 2014, says Bloomberg.
Algeria is in dire need of increase in world oil prices, as the balanced budget, according to the IMF, can only provide a price above $90,6 per barrel, writes Bloomberg. The authorities of this country achieve the adoption of the OPEC agreed solution for the sake of which are ready to provide individual countries certain concessions.
More urgent is the question for Ecuador and Venezuela, which, according to UBS, for the victory over the deficit, the increase in world oil prices to $104,69 and $117,5, respectively. Ecuador’s President Rafael Correa said earlier that the failure of the agreement on reduction of oil production can lead to the disintegration of OPEC, and to experiencing the acute crisis of Venezuela the persistence of low oil prices threatens the collapse of the economy.
Nigeria leading the fight against attacking its oil fields by the rebels, and with difficulty recovering after the civil war, Libya from the effect of OPEC quota exempt, however, both countries are interested in increasing oil prices. But if Nigeria is to balance the budget would be enough and $85,4 per barrel (Deutsche Bank estimate), Libya need $216,5 per barrel (IMF data).
Russia, as writes Bloomberg, citing estimates Natixis SA, the balanced budget should increase in the average price of oil to $69 per barrel. Russian President Vladimir Putin said in September that Russia is satisfied with the current level of prices, although “could be a little higher.” On 26 November the head of Ministry Alexander Novak said that Russia would support OPEC’s position, but only if the cartel countries reached a common consensus within the organization.