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OPEC crude falls $42.9/barrel

Oil&Gas Materials 27 January 2015 13:46 (UTC +04:00)

Baku, Azerbaijan, Jan. 27

By Umid Niayesh - Trend:

OPEC oil basket price decreased to $42.9 a barrel on Jan. 26, the organization's website reported Jan. 27.

The price of OPEC basket of twelve crude oils stood at $43.69 on Jan. 23.

OPEC's oil basket is currently made up of the Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Crude oil fell to the lowest in almost six years after OPEC Secretary-General Abdalla El-Badri said that there was about 1.5 million barrels a day of excess supply, Bloomberg reported Jan. 27.

West Texas Intermediate for March delivery fell 44 cents to close at $45.15 a barrel on the New York Mercantile Exchange. It was the lowest settlement since March 11, 2009. The volume of all futures traded was 15 percent below the 100-day average at 2:52 p.m. Prices are down 53 percent from a year earlier.

Brent for March settlement slipped 63 cents, or 1.3 percent, to end the session at $48.16 a barrel on the London-based ICE Futures Europe exchange. Volume was 12 percent lower than the 100-day average. The European benchmark crude closed at a $3.01 premium to WTI.

OPEC's oil basket price was $107.89 in mid-June, but has been in dramatic decline, especially since October.

OPEC members held a meeting in ministerial level November 27, 2014 to evaluate the global oil market and the falling trend of the oil price. Iran and Venezuela wanted to lower the Cartel's oil output and set a new ceiling level below the current 30 mbpd level.

OPEC says that the demand for the organization's crude is estimated at 29.1 mbpd in 2014. In 2015, the figure is estimated to reach 28.8 mbpd.

Follow the author on Twitter: @UmidNiayesh

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