In order to balance its budget, the price of $55 per barrel would be enough for Iran, while Lebanon would need the price, four times higher. According to experts’ estimates, Russia would need the price of $69 per barrel, RBC reports.
The largest oil producing countries of the world will need different price for oil in order to balance their budgets, and this is the reason for disputes regarding the necessity of reduction of production and volume of restrictions, Bloomberg reports. Quoting the data of the International Monetary Fund (IMF) and the estimates of investment banks, the agency assessed at what oil price OPEC and Russia will manage to balance their budgets.
In particular, in order to deal with budget deficit in 2016, Kuwait will need the average price of $47.8 per barrel, Bloomberg reports. It is less than Brent barrel cost at ICE on Monday ($48,05). The Kuwait authorities traditionally speak out for limiting oil production, supporting their allies from Saudi Arabia.
For balancing the budget, the United Arab Emirates (UAE) will need that the barrel price rises up to $58.6 for barrel, Qatar - $62.1 and Saudi Arabia – up to $79.7, Bloomberg reports, quoting IMF data. In 2015, amid low oil prices, the budget deficit of Saudi Arabia reached maximum since 1991, making up $97 bln, or 15% of GDP.
