Saudi Arabia goes “all-in”: the oil should cost no more than $10


Saudi Arabia believes that the marginal cost of oil may not exceed $10 per barrel.

According to the Oil Minister of Saudi Arabia Ali al-Naimi, the appropriate oil price is $ 10 per barrel. Such a shocking price of “the black gold” al-Naimi announced in his sensational interview with MEES 10 days before the new year, informs, but his statement was not spread in Russian media.

Russian media limited themselves to small excerpts from an interview with the Minister of the country leading in oil production, not saying a word about his his price forecast, as they have a vast experience in “giving baloney” to their fellow citizens.

This is not surprising, and concealing the full text of the conversation with Ali al-Naimi in Russia is quite predictable, and related to his shocking announcement that Saudi Arabia is quite comfortable with oil price around $10 per barrel.

When asked “What will be the oil price in the long run?” Ali al-Naimi said: “It depends on the marginal cost, and differs from field to field. Our marginal cost is no more than $10 per barrel. Currently we don’t have estimates, but in 10 or 20 years it still may be the same $10 per barrel”.

Such a statement from al-Naimi is quite justified, given the achievements of the last 30 years that turned Saudi Arabia into an oasis in the desert.