Oil prices will keep falling until Russia or Saudi Arabia hit 'pain point': Ex-White House aide
announced Saturday that it will offer discounts to its official selling prices next month. The kingdom, the de facto leader of OPEC, is also planning to raise production, together with the United Arab Emirates.,"Prices of oil are going much lower from here," said McNally told CNBC on Thursday. "Everybody's got a pain point and we're going to go down and test it."
National prestige is involved here, honor is involved and political power is involved. And political leaders will suffer costs in a war if they believe they are pursuing a greater and more important aim.Oil prices are going to fall until they hit a "political-financial pain point" for Saudi Arabia or Russia — or if North American production is significantly curtailed, said McNally. He did not give a price forecast.
Prices will test a point well below Russia's break-even price — at 42.4 euros a barrel, said McNally."National prestige is involved here, honor is involved and political power is involved. And political leaders will suffer costs in a war if they believe they are pursuing a greater and more important aim," said McNally.
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