Chart of the week: Will Opec turn off the taps?

Members of oil cartel Opec are beginning to feel the fiscal squeeze of low oil prices – some more than others.


Oil has hit a two-year low around $90 a barrel amid plentiful supplies and weak demand growth. Now the Organisation of the Petroleum Exporting countries (Opec), which controls 60% of the world's reserves and around a third of daily supply, is discussing what to do.

If prices fall too far, members face a fiscal squeeze, says Andrew Critchlow in The Sunday Telegraph. The chart shows the prices at which Opec members, along with non-Opec exporters Bahrain, Oman and Russia, can balance their budgets.

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Iran has the highest breakeven price and a weak economy, so is keen to slash production. But the Gulf states, including Saudi Arabia, which has already cut output, are hesitating. They have enough cash to weather a short-term price slide, and would rather see whether the price rebounds in winter.




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