How Low Could Oil Fall?

The video discusses the impact of OPEC's decisions on US shale producers, highlighting a Bloomberg News story about potential oil prices dropping to $40. It examines production costs and breakeven points for US shale producers, with insights from Paul Stevens and the IEA. The video analyzes Brent crude oil price trends since 2014, noting significant declines and historical comparisons to the 2008 financial crisis and the 1980s oil crash, driven by Saudi Arabia's market strategies.

What is the main reason some US shale producers can continue production even if oil prices fall to $40 a barrel?

• They have long-term contracts with fixed prices.

• Their production costs are lower than $40 a barrel.

• They receive government subsidies.

• They have diversified into other energy sources.

What was the price of Brent crude oil at its nine-month high on June 19th?

• $42 a barrel

• $68 a barrel

• $147.50 a barrel

• $115 a barrel

By what percentage did oil prices decline in November, as mentioned in the video?

• 12%

• 40%

• 18%

• 38%

What was the lowest price of crude oil in the 1980s due to the Saudi-led market strategy?

• $12 a barrel

• $68 a barrel

• $40 a barrel

• $36.20 a barrel

What historical event is used to illustrate how quickly oil prices can fall?

• The 1980s oil crash

• The 2008 financial crisis

• The 1973 oil embargo

• The 1990 Gulf War