Oil finds $100 floor on Saudi politics, output cost
Saudi set $75 a barrel "fair price" when economy weak while Bullish Goldman sees marginal output cost as $100 a barrel. Meanwhile, Former Saudi oil minister says oil prices could leap to $200-$300 a barrel if Saudi Arabia is hit by serious political unrest.
April 5, 2011 12:18 by Reuters
Paul Horsnell, head of commodities research at Barclays Capital, agrees oil companies need ever higher prices to balance rising costs.
The bank’s equities research says the break-even cost for integrated European oil companies is now not far off $100 a barrel.
“Our estimates would show that pre divestments the average break-even oil price required by the integrated group is $95 post capex and dividends,” it said.
(By Barbara Lewis and Richard Mably; Additional reporting by Dmitry Zhdannikov and Joshua Schneyer; editing by Richard Mably and James Jukwey)