Saudi Arabia only needs $10 a barrel to break even pumping oil

Whereas U.S. Shale oil producers need a price of $40 to $70 a barrel to break even and to make a profit.

So, I would say expect a price from OPEC of maybe $30 a barrel to try to put U.S. Shale Oil producers out of business because OPEC and Saudi Arabia just don't like the Shale Oil competition worldwide that is cutting into their business.

So, here is the list of why Opec and Saudi Arabia is doing this:

1. ending ISIL and preventing it from taking over Sunni Governments like Saudi Arabia by preventing funding.
2. preventing Russia from supplying arms to Assad in Syria in order to stop the deaths of Sunnis there.
3. ending shale oil competition worldwide
4. putting IRan out of business and Hezbollah too.

There may be many more reasons than this that all this is going on but this is what I have been able to discover through investors and other sources so far.


So, one way to look at this is this might end the warfare in the Middle east on both sides except for the U.S. So, this de-funding of oil might stop the warfare on both sides because oil supplies the major funding to both sides in this middle east sectarian conflict.

And even if it doesn't stop the warfare it is sure to slow it down a lot.

And all people on earth for now are enjoying lower gas and diesel prices.