Industry experts confirm sixty dollars is the threshold.
Ed Pearcey 24, senior contributor for Offshore Technology, Reuters, and Power Technology, 7/4/2024, "Strong oil and petrochemical demand likely to 2030, despite IEA data," Offshore Technology, https://www.offshore-technology.com/features/strong-oil-and-petrochemical-demand-likely-to-2030-despite-iea-globaldata/?cf-view, christian
As production becomes more fragmented, the burden on OPEC+ to restrain production to keep prices up will become increasingly futile, said the analysts. The risk of producers failing to anticipate or coordinate to prevent oversupply is real, so an oversupply scenario should not be completely disregarded.
Prices and market dynamics
In terms of prices, a low oil price scenario would force non-competitive players to bear losses, narrow their markets or exit the market altogether, said the analysts.
Industry experts agree that the $60 per barrel (bbl) benchmark is a critical breaking point for many countries with a large share of fields having near or higher breakeven oil prices.