Energy market traders

Oil exporters to feel more pain: Fitch

NEW YORK CITY, April 6, 2017 – Oil prices will average USD 52.50 per barrel this year, ratings agency Fitch projected on Wednesday, signalling continued pressure on the budgets of most major exporters in Eastern Europe, the Middle East and Africa.

 

The agency calculated the break-even prices of 14 exporters in the region, revealing that 11 would be unable to balance their budgets if its average price prediction turns out to be correct.

“Only Kuwait has a 2017 fiscal break-even price appreciably below our forecast oil price,” Fitch said in a news release. Kuwait, which on Wednesday entered into a 1-year, 2-million-bopd-per-month supply deal with Egypt, needs a break-even oil price of USD 45 per barrel. The next two best performers were Qatar, at USD 51 per barrel, and the Republic of Congo at USD 52 per barrel.

With a break-even price at USD 139 per barrel, Nigeria fared the worst on the list, followed by Bahrain at USD 84 per barrel.

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