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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessFollowing on from 0846GMT bullet, the fact......>
OIL: Following on from 0846GMT bullet, the fact that the increased production
level in April is above Saudi's maximum production levels, the Kingdom will have
to tap into its reserves in order to facilitate the dumping of such a large
amount of oil onto global markets.
- While this strategy will cause some fiscal stress in Saudi Arabia, there are
clear signs that the move is a calculated attempt to improve Saudi's
geopolitical standing in the region.
- It is Saudi's main adversary in MENA region - Iran - that stands to suffer
greatly.
- Iran's fiscal breakeven for a barrel of oil is USD194.6 according to the IMF,
compared to USD83.6 for Saudi. Iran is already dealing with negative fallout
from US sanctions, and the 4th highest number of COVID-19 cases worldwide.
Sustained low oil prices only place greater economic pressures on Tehran.
To read the full story
Sign up now for free trial access to this content.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.