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One way to gauge support for the price of oil is to calculate the breakeven price. In other words, what is the dollar amount per barrel that would be required for an oil-producing country to balance its fiscal budget?Several factors go into this calculation such as the location (and quality) of a country’s reserves, and the spending habits of the federal government.
Analysts at Carnegie Investment Bank recently put together this chart, which illustrates the breakeven price needed for some of the world’s largest oil producers.
