"Oil prices at these levels could result in more than $230 billion in lost annual revenue across MENAP [Middle East, North Africa, Afghanistan and Pakistan] oil exporters, compared with October projections, placing significant strains on fiscal and external balances." Oil prices are down some 60% since the beginning of the year as the coronavirus pandemic decimated oil demand. This situation will lead to soaring fiscal breakeven crude prices that are needed to balance the budgets of regional oil exporters. "Notwithstanding some improvement over the past two years, breakeven oil prices (oil prices needed to balance the budget) are much higher than current oil prices in all MENAP oil exporters, exceeding $80 in some countries (Algeria, Bahrain, Iran, and Oman)," the IMF said. "This reflects current projections of fading effects from the COVID-19 outbreak, gradual improvement in oil prices, and the benefits from sustained global policy easing."

Source: The North Africa Journal April 15, 2020 10:30 UTC