This morning the oil price is down again, not much but around 70 cents which takes Brent nearer the recent lows, note that the differential is $3.46 at the bottom end of its range. WTI outperformance is partly due to the US GDP numbers last week but also the strength of the greenback and also the crude draw last week which caught the market by surprise.
Probably the biggest loser amongst the oil producing stakes when prices fall is Iran, which despite being under sanctions has a very high break even rate at the moment. Oil Minister Bijan Namdar Zanganeh spoke on Friday asking Opec to ‘work together’ to halt the slide in crude prices. Although there will be some negotiations going on behind the scenes the next Opec meeting is not until November 27th so it might be a tricky month or two.
Probably the biggest loser amongst the oil producing stakes when prices fall is Iran, which despite being under sanctions has a very high break even rate at the moment. Oil Minister Bijan Namdar Zanganeh spoke on Friday asking Opec to ‘work together’ to halt the slide in crude prices. Although there will be some negotiations going on behind the scenes the next Opec meeting is not until November 27th so it might be a tricky month or two.
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