However, I thought I had read that Venezuela and Iran needed to have oil over $90/barrel or they lost money.
Am I wrong. Please enlighten me.
“However, I thought I had read that Venezuela and Iran needed to have oil over $90/barrel or they lost money.”
I believe there is some confusion when one cites “lose money”.
The lifting costs of oil are far below $90/barrel. See what I lifted from EIA report http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=5
I believe what you read is, for those countries dependent heavily on the income derived from oil, is that oil prices fall below the cited amount there would not be enough income to cover the costs of actually running the country.
You see, taking the price of crude down can hurt the continued improvement of oil production in USA, but actually really, really devastates those countries much more reliant on the income stream that subsidizes their economies.
And, since we are a consuming country, we enjoy an improved standard of living when prices fall.