$42 oil isn’t enough for many producers

Oil’s 300% recovery from the bear market lows below $10 observed in April isn’t sufficient to balance the budgets of some producers. 

For instance, OPEC heavyweights like Saudi Arabia and Iran need above-$90 oil prices, while countries like Venezuela and Libya would see a budget shortfall as long as prices hold below $300. 

The data published by RBC Capital Markets include budget adjustments made due to coronavirus pandemic. The West Texas Intermediate crude is currently trading at $42.60 per barrel and Brent is priced at $45.10.