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Wednesday, May 16, 2012

Saudis Soaring Costs May Keep Oil Above $100


"The marginal cost of production is the ultimate floor in the oil market. In the North Sea it can be $80 to $100 dollars," said Andrew Moorfield from Scotiabank.
"But the real marginal cost of production also includes social costs that some big oil producers need to pay. When you add social costs in Russia and Saudi Arabia, it means that the effective floor on Brent is around $100 a barrel," he said.

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