Iran Will Soon Pump Oil at $1 Per Barrel



Comments (2)

  1. Raymond Babcock says:

    The price of oil at 15 dollars a barrel. Gas would $0.11 cents a gallon. Larger cars and trucks would sell like sliced bread. Saudia Araba has started this oil war. Did anyone think there would not be a price to pay.

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  2. Kevin Beck says:

    While it may be true that Iran’s marginal cost of production is $1 a barrel, that is not the all-in cost.

    They are developing their reserves with old equipment. If they had to purchase new equipment, that would increase their all-in cost. Additionally, their oppression budget (read: social spending) demands a much higher price for their oil sales. So no matter what else, they will not intend to sell their oil for anywhere near $1 (or even $5) a barrel. And if they are able to satisfy demand with their production, they will be replacing that old, worn-out equipment sooner rather than later.

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