OPEC oil price plunges after a week rise

Oil&Gas Materials 31 March 2015 17:26 (UTC +04:00)

Baku, Azerbaijan, March 31

By Khalid Kazimov - Trend:

While Saudi Arabia's air strike over Yemen had raised the OPEC oil basket price by about $4 on March 26 day-to-day, the prices plunged again to the past week's level.

According to OPEC official website, the cartel's oil price decreased from $54.55 on March 26 to $51.45 on March 30.

OPEC's monthly report, published March 16 says that the twelve members of this cartel produced 30.022 million barrels (mb/d) of crude oil per day in February, which is 137,600 barrels less than in January.

The last month's level is approximately equal to the ceiling level, which had been set at 30 mb/d.

Saudi Arabia and its Arab allies launched air strikes on the Houthi (local Shia group) militia forces in Yemen March 25. The move triggered an oil shipping disrupts through Bab el-Mandeb, a strait located between Yemen on the Arabian Peninsula, and Djibouti and Eritrea in the Horn of Africa.

According to Bloomberg's statistics, WTI price for delivery May 15 decreased by 2.2 percent day-to-day to $47.61 on March 31, while Brent with a 2.19 percent decrease stood at $55.06.

OPEC's oil basket (ORB) 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's monthly report released Feb. 9 said that the cartel's total crude oil output has fallen by about 53,200 bpd in January compared to December, reaching 30.153 mbpd.

Edited by CN