You need to realize that the oil in
most oil producing countries is state owned, not private. The reason those countries have cheap fuel is that it is subsidized by the government of that country. In other words the oil produced in those countries is pretty much given to the citizens as hush money and the rest is sold to us and China at huge profits.
I was reading an
article yesterday about the state of affairs of the Mexican national oil company and how it is probably going to go broke even at 140/bbl for crude. They have tapped all the easy stuff and dont have the technology to get to the difficult oil that is in deep water off shore or is difficult to refine.
More here also.