Many oil-producing countries cannot afford to let the price of oil drop as the revenue they require to assure macroeconomic stability at home continues to increase, a new report by PFC Energy, a leading oil consultancy, reveals, writes Sheila McNulty in Houston.

Owing to increased government spending and domestic consumption, as well as inflation and the erosion of the US dollar, the threshold oil price has risen for every Opec member with the exception of Qatar since 2000.