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Expert: Rise in world oil prices caused by four factors

Oil&Gas Materials 5 February 2011 13:12 (UTC +04:00)

Azerbaijan, Baku, Feb. 5 /Trend, E.Ismayilov/

Fluctuations in the evaluation of the volume of hydrocarbon reserves in the U.S. at this stage ceased to be the main factor of influence on the formation of world oil prices, an expert of one of the foreign companies operating in Azerbaijan said.

According to him, if earlier the change in the assessment of U.S. oil reserves was a determining factor in shaping the world oil prices, the current price increase can be caused by four factors.

Thus, as one of the main factors, the expert described the riots taking place recently in some Arab countries, particularly in Sudan, Egypt and Yemen, where the people dissatisfied with  the current regime took to the streets.

Another important factor affecting the current change in oil prices is the possible speculations by traders who artificially, by buying and storing certain volumes of oil, can affect prices in the oil market, the expert said.

As the other two factors, the expert described the growing potential of China's economy and seasonal changes in weather conditions (cold snap).

Over the past four days, the oil price, including Azerbaijani oil, exceeded $100 per barrel, which is highest level after a sharp fall in the midst of the global financial crisis.

On Feb 3, the price of AZERI LT CIF Augusta was $104.07 per barrel or $0.32 per barrel more, compared to the previous day's price, according to the State Oil Company of Azerbaijan (SOCAR), which has produced Light Oil since 1997. AZERI LT FOB Ceyhan oil price was $103.26 per barrel, or $0.32 per barrel more than the previous day's price.

Azeri Light oil is produced from the Azeri-Chirag-Gunashli offshore fields, which is developed under BP's operations. It is directly delivered to the Turkish port of Ceyhan via the Baku-Tbilisi-Ceyhan main export oil pipeline, to the Georgian port of Supsa via the Baku-Supsa pipeline and to the Georgian port of Batumi by railway.

The price of Brent Dated produced from the North Sea was $101.53 per barrel, $0.24 per barrel up compared to the previous price.

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