Oil traders, international oil companies, shipping companies, pipeline companies, or even small oil companies are dealing with various storms in the market. They are struggling. Many oil powers, such as Saudi Arabia’s Aramco and the recent adjustment of forces, have been repeatedly criticized. Let’s take a look at some of the other players in the oil market and their situation.
Analysts may see Oman’s role as a mediator in a volatile region. However, Oman itself is in dreadful financial difficulties. Oman is one of the most vulnerable countries to oil price fluctuations. The minimum price the country needs to keep its oil budget balanced is $82 a barrel. Oil revenues make up about two-thirds of Oman’s total budget in 2020. The country needs funding from other Gulf states now it seems.
Angola is the second-largest producer of African oil in terms of oil revenues. Oil accounts for 90% of the country’s total export revenue. Angola’s oil exports in May almost halved compared to the previous month.
Africa’s largest oil producer is facing an oil crisis. Independent oil producers account for about one-fifth of Nigeria’s oil production, which is about 400,000 barrels per day. These independent manufacturers are now in trouble. Most of them bought their capital six years ago when oil prices were around $100 a barrel. Nigeria’s national oil company has called on all partners and suppliers to cut costs by 30% to 40% to support the oil industry. Nigeria now needs $144 a barrel to balance its budget due to high refinery costs and government corruption.
Venezuela has the world’s largest oil reserves but its production can only deal with one oil well, with billions of barrels left untouched. In addition to the crippling US sanctions on Venezuelan oil exports, its oil production has dropped to 570,000 barrels per day.
Bahrain is also on the list of countries affected by the fall in oil prices; Of course, it will be supported by Saudi Arabia if it faces a problem. However, Bahrain now needs $96 a barrel of oil to keep its budget balanced.
The British oil company shocked the market, after losing 15% of its workforce. The company said it had cut $17.5 billion in oil and gas capital.
Iraq, like Venezuela, faced problems even before oil prices dropped. Political unrest, the lack of a budget, the spread of coronavirus, and a $20 billion deficit are some of Iraq’s problems.
Iraqi oil production fell from 4.57 million BPD in March to 4.165 million BPD in May.