scfranklin94

Wall Street Breakfast: Must-Know News

A lot of people get mixed up between the cost to produce oil versus the cost to maintain a goverment's fiscal policy. Kuwait needs crude to stay at $45/bbl to maintain their level of government spending; they need it to rise to over $55/bbl so that all of their investments in Dubai don't default. Kuwait has a lot of projects on the drawing board; at $40/bbl, most will get shelved.