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OIL-PRODUCTION cartel Opec voted yesterday to maintain its 30 million barrel-a-day output limit despite oil prices slumping to unprofitable levels.
Crude oil’s market price fell further to $62.10 (£40.50) a barrel following the announcement, having traded at $115 (£75) last year.
The slump has hurt oil-rich nations including Russia, Iran and Venezuela.
A comparison of production costs for different nations shows that Russia needs an oil price of at least $72 (£47) to make a profit, Venezuela $117.50 (£76.70) and Iran $130.50 (£85.20).
But US allies are also feeling the pinch, with the United Arab Emirates break-even price at $77.30 (£50.50) and Saudi Arabia’s at $106 (£69.20).
Only Qatar, Kuwait and Canada’s Alberta province can make a profit at the current rate.
The once-powerful Opec now only represents a third of world crude production.
“The reality now is that we cannot have these $100 (£65) prices anymore,” it said.
