Saudi Arabia pumps oil for $9 — but needs $95 per barrel to fund its government
Oil production cost vs government fiscal breakeven price, US dollars per barrel; 2023–24 estimates
$31
shipping cost per barrel today
(up from ~$2 normally)
(up from ~$2 normally)
$210
price of refined diesel per barrel
(up from $85)
(up from $85)
Production cost ($/barrel)
Government fiscal breakeven ($/barrel)
Saudi Arabia holds the world's cheapest oil to extract, but its entire government budget depends on selling that oil at prices ten times what it costs to pump — making it paradoxically fragile to any price drop. War-driven shipping disruptions have compounded the crisis across the supply chain, pushing tanker delivery costs from $2 to $31 per barrel and sending refined diesel to $210 a barrel.
Daily Maverick · Source: Supplied data
