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Following on from 0846GMT bullet, the fact......>

OIL
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. 

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