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Overheard: Oil and Unrest

Wall Street Journal Original article ›

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PFC Energy has estimated the price of oil that would be required by OPEC countries to support higher public spending after the political unrest in these countries. The estimate is based on the minimum Brent crude price an OPEC country needs to balance its current account. This price supports the higher social spending needed. For Saudi Arabia that price was about $28 in 2005, $64 in 2010, and could reach $75 in 2012. PFC Energy says OPEC will cut output if prices fall below $90, because of higher social spending needs after the democracy movements in Arab countries.

Global oil prices after the OPEC production cuts in December 2009.

02/04/2006

The future for global oil prices is for them to remain at these lower levels at about $40 a barrel according to experts.

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