Posted By RichC on December 1, 2014
Last week oil prices hit multi-year lows after the Organization of the Petroleum Countries (OPEC) decided to maintain their current production rate. This indicated that they are either comfortable with the current price of oil or more than likely want to force producing areas with a higher cost per barrel to stop exploration, drilling and oil production. CNBC’s Michelle Caruso-Cabrera reported findings (click map below) that estimated the breakeven price per barrel for several areas around the globe. The range is shockingly wide … from an expensive breakeven of $100/barrel in Alberta’s oil sands to an amazingly cheap $10/barrel in Saudi Arabia.
Brent crude hit a five year low of $67.53 but is back up over $70/barrel early on Monday, while U.S. crude is at $67 having traded as low as $63.72.
"The market is still very much in panic mode," said Energy Aspects’ chief oil analyst Amrita Sen. "Once we get over the panic, Brent prices will probably stabilize at around $65-80 a barrel in the short term."