Iran Needs Oil above $90 per Barrel to Break Even

[Dow Jones/Gulf Times-Qatar] Saudi Arabia needs crude oil prices to remain above $49 a barrel to avoid a fiscal deficit, said Mohsin Khan, director of Middle East and central Asia at the International Monetary Fund. Other Gulf states with smaller populations and lower government spending like the UAE are able to run a fiscal surplus as long as oil prices are above $23 a barrel. Kuwait's break-even price is $33 a barrel. "Iran's break-even price is $90 a barrel," Khan said. "If prices dip below $90 a barrel... then they would have to tighten their public expenditure policy, and probably cut subsidies."

2008-09-26 01:00:00

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