$50/Barrel Is The Magic Price For Oil
The magic number for oil is $50/barrel, according to Saudi Arabia’s oil minister.
Khalid Al-Falih says that’s the perfect price for the oil market because it’s just low enough to prevent shale oil and other high-cost producers from lifting supply to levels that hinder market recovery, the Wall Street Journal reports. But at the same time, $50/barrel is far above the $30 low oil hit in January.
Al-Falih says he’s not against shale oil development, and would even like to see more of it hit the market—but warns that shale growth shouldn’t rise much above 300,000 barrels a day. If it does, he says it will disrupt the market’s tenuous balance. [Bloomberg]