OPEC Oil Price Rises To $60 Per Barrel
OPEC oil traded at $60.45 on Wednesday. The daily price has increased by $0.17, 0.28% from the previous day. Meanwhile, the average cost of a barrel of OPEC has risen 6.84% so far this month, from $54.38 of the previous month to $58.1.
In the last twelve months, the price of a barrel of oil has increased by 4.7%.
To review the historical price of the OPEC oil since 2003, it reached its maximum in July 2008 and peaked at $140.73. On the other hand, its minimum price became recorded on April 22, 2020, when it dropped to $12.22 per barrel.
The OPEC basket is an average of the oil prices produced by OPEC member countries and is used as a benchmark for oil prices.
OPEC controls almost 50% of the world’s oil production and aims to protect oil prices. It has a decisive influence on oil prices by increasing or decreasing production, that is, supply.
Russia expects a gradual recovery in the oil industry
OPEC and the producers led by Russia are more optimistic about the evolution of demand and oil prices for the coming months of 2021. This forecast is known when the market already reflects a gradual rise in oil price; Brent rises more than 13% in the year and is close to 60 dollars a barrel. West Texas trades in New York passed $55.
With moderate optimism, OPEC + estimates that while the economic outlook and demand “will remain uncertain,” the gradual roll-out of vaccines is a positive factor. The Russian Deputy Prime Minister Alexander Novak stressed that it is a phase of mass vaccination growth and recovery of macroeconomic agenda.
Improvement in the economic outlook can boost the transport of goods. OPEC and its allies seem to have fulfilled the commitments to contain their production. A note from the cartel’s technical committee points out that the production adjustments have been 100% achieved.
The committee held a meeting online. The member producers highlighted that the crude reserves stored in the tanks and other infrastructures of the most important consuming countries fell in December. The situation differs greatly from the one in the past year. In April 2020, when demand suffered a historic collapse, the price of crude oil became negative.
OPEC+ stressed that since the April 2020 ministerial meeting, oil production adjusted by a total of 2.1 billion barrels. It was meant to stabilize the market and accelerate the rebalancing process. Also, Saudi Arabia unilaterally decided to withdraw one million barrels a day until February. The joint committee will meet again on March 3, the day before the sector’s ministers summit.
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