Unlike other commodities (that compete in the marketplace) the world price OPEC sets for oil has no relation to what it costs to produce the oil. Oil companies could make a handsome profit at 20 or 30 dollars a barrel. In 1999, Saudi Oil Minister Ali al-Naimi publicly admitted that the all-inclusive cost of producing a barrel of oil in Saudi Arabia — which has the easiest-to-produce oil in the world — is $1.50. That is not a typo. A buck fifty. The world price is over $100 a barrel, and the country that has the most influence on that price is Saudi Arabia.
Worldwide, it costs most oil producers about $5 to produce a barrel of oil.