April 24, 2020: I am so fascinated about Saudi Arabie, I forget to mention Iran. That country is in real, real trouble. For the first time in years it is asking for a $5 billion loan from the IMF.
OPEC Basket, link here:
It's a long, long story, and a long history, and we've discussed it on the blog before, so I'm not going to go through it again, but historically, WTI has traded at a higher price than Saudi oil. Just saying.
Operators in the Bakken can survive on $15-oil with new wells only, and only for the first six months or so. Saudi Arabia needs $73-oil to balance their budget. They might squeeze it to $60, and they might even say they can squeeze it to $50 but the 15,000 princes won't be happy with $12-oil, especially when this was all started by MbS. At least that's the meme. The truth is probably somewhat different.