What’s Wrong With Oil Prices Analysis?

... Kortunova: Does the World Need More Oil? The most efficient companies, whose production cost is lower than the national average – will be able to maintain their position in the oil market even with an oil price of $35 per barrel. The drop in oil prices below break-even point rarely affects a government’s decision-making process. Following the basic tenets of economic theory, oil-producing states should seek to correlate the level of production with budgetary commitments. In reality, however, all countries ...