Currently, Brent crude price has risen above $50, however even at this price oil exporting countries still post budget deficits.
“This is a psychological milestone," Michael Wittner, the New York-based
head of oil-market research at Societe Generale. “Some Nigerian oil will be back and all Canadian, and the big question is whether it will matter. The market might not care," he added.
The world’s 50 largest oil companies are ready to put the price at $53 a barrel to prevent growing losses, Wood Mackenzie Ltd. said in its April report.
According to analysts at Bloomberg Intelligence, US shale producers need oil rising to $55 before drillers respond with a “significant ramp-up” in well completions.
Producers are much more cautious after oil prices’ crash last year. In experts’ opinion, for OPEC members, oil at $50 a barrel will not be enough as well. Higher prices are needed to balance their budgets.
Analysts at Bloomberg said only Kuwait and Qatar can make their economies balanced at this price level. However, Qatar energy minister wants oil at a minimum of $65 a barrel.
