“In the meantime, oil below $70 is already playing havoc with budgets across the global petro-nexus. The fiscal break-even cost is $161 for Venezuela, $160 for Yemen, $132 for Algeria, $131 for Iran, $126 for Nigeria, and $125 for Bahrain, $111 for Iraq, and $105 for Russia, and even $98 for Saudi Arabia itself, according to Citigroup.”
That is not production cost.
Those governments get significant revenue from the oil production. Those number are the required price of oil to balance their government spending. They are not related to the cost of production.
Budgetary fiscal break-even costs are NOT equal to ‘cost of production’?????