Horizon analysis found that the homebuyers who made the biggest financial gains over the last decade got in the market at the bottom
Summary: According to IMF, fiscal oil breakeven
is an important metric, but it fluctuates based on governments' expenditure and oil production
The current period of weakness has plunged price levels below most countries' fiscal breakeven
prices, the level needed to generate a fiscal surplus.
The only country in MENA that can still generate a fiscal surplus with current oil prices is Kuwait, which posts a breakeven
price of $50 for 2015, as estimated by the International Monetary Fund (IMF).
Many of these countries have also accumulated sizeable financial reserves, it said, indicating that the only country in the MENA that can still generate a fiscal surplus with current oil prices is Kuwait, which posts a breakeven
price of USD 50 for 2015, as estimated by the International Monetary Fund (IMF).
About a quarter of new wells in 2014 had a breakeven
WTI price of $40 or less.
A tumble in the price from the year's high above $115 per barrel to below $90 has focused investors and oil companies once again on the breakeven
level -- the point at which net return on a project turns positive.
Hydrocarbon prices will continue to display relative stability, with additional output from countries that are members of the Organisation of the Petroleum Exporting Countries (Opec) offsetting additional demand from emerging markets; while unconventional oil has a high breakeven
point that acts as a floor on oil prices," said Lucio Mauro Vinhas de Souza, Managing Director -- Sovereign Chief Economist of Moody's said in Dubai yesterday.
Highlighting that the surge in hydrocarbon receipts in recent years has further strengthened government finances, it said Qatar's fiscal breakeven
oil price remains amongst the lowest in the GCC (Gulf Co-operation Council) despite a large step-up in spending that has been driven in part by capital spending on infrastructure development.
The training programme covers several areas including: clarifying the concept and importance of breakeven
analysis, the analysis of the relationship between size, cost and profit, the role of breakeven
analysis on short-term financial planning and the role of breakeven
analysis in pricing decisions, as well as the basics of cost categorization according to their relationship to the size of the productive, service and marketing sector and cost analysis and its auditing.
These measures are inflation swap rates and breakeven
Kuwait is not alone in watching its breakeven
crude prices double, even as oil prices climb.