OPEC oil price falls below $56
Baku, Azerbaijan, Dec. 17
By Dalga Khatinoglu- Trend:
OPEC (Organization of Petroleum Exporting Countries) oil basket price slipped below $56/barrel on Dec.15, losing 46 percent of its value compared to mid-June.
The cartel's oil basket was sold at $55.9 on Dec. 16 declining $1.1/barrel compared to the previous day, refreshing the lowest record since five years ago, the organization's official website reported on Dec. 17.
OPEC 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).
OPEC oil basket price was $107.89 in mid-June, but has been in dramatic decline, especially after October.
Despite the ceiling level of 30 million barrels per day (mbpd) by OPEC, 12 members of this cartel produced 30.053 mbpd in November.
However the output is about 390,100 less compared to the preceding month, according the OPEC's latest monthly report released Dec. 10.
The biggest decline in the crude production level belongs to Libya with 248,300 bpd fall in a month, followed by Saudi Arabia (60,100 bpd) and Kuwait (59,400 bpd).
OPEC members held a meeting in ministerial level on Nov.27 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 crude is estimated at 29.4 mbpd in 2014. In 2015, the figure is estimated to reach 28.9 mbpd.
Dalga Khatinoglu is an expert on Iran's energy sector, head of Trend Agency's Iran news service
Follow him on @dalgakhatinoglu