Estimates by EIA suggest that the price decline will cost all 12 OPEC members a total of $257 billion in lost revenue this year. Member countries most exposed to lower oil prices will be hurt the most. That would include Iran, which needs a break-even price of $143 per barrel to balance its budget, and cash-strapped Venezuela, which teeters on the brink of default.
Even before the OPEC decision, Iran was reeling from sanctions over its nuclear program. Not only did export revenue decline 30 percent, but the nation’s oil and gas fields were virtually closed to investment. As a result, Iran’s access to technology that could boost output and offset its high break-even price was severely limited.
