Happiness comes with a higher crude oil price
This final note today. Oil closed at almost $108 a barrel in New York this afternoon. That’s actually a good thing, ’cause it implies traders think the economy — and thus demand — is coming back stronger.
But that’s not really what I wanted to tell you. The anticipated future price of crude is a bit more relevant than today’s mark. So this item from the Institute of International Finance — that’s a global banking group — deserves a mention.
They figure the Saudi Arabian government, the world’s biggest supplier, needs oil to average $88 a barrel this year to break even — that is, avoid deficits. That’s up from a $68 break even point last year.
How come? All the spending the Saudi government’s doing to keep its citizens happy and not in the streets.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.