OPEC Reference Basket value drops to lowest level in 3 years
BAKU, Azerbaijan, Jan. 17
By Leman Zeynalova - Trend:
In 2019, the OPEC Reference Basket (ORB) value fell by $5.74, or 8.2 percent, compared to 2018, to settle at $64.04/b, Trend reports citing the cartel’s Monthly Oil Market Report (MOMR).
“This is its lowest level in three years as oil prices felt pressure over the year by the trade dispute between the US and China, which has contributed to a weakening global economy and slowing oil demand growth in 2019. Furthermore, the fast growth of non-OPEC oil supply, particularly from US shale production, that grew more than global oil demand growth over the year, also weighed on oil prices,” said the cartel.
Nevertheless, the ORB value closed 2019 higher m-o-m, climbing more than $3/b in December, to settle at $66.48/b, its highest monthly value since April 2019.
Oil prices gained for the second consecutive month, amid improved oil fundamental balances and continued market stabilization efforts conducted under the DoC, as well as easing trade tensions between the US and China, said OPEC.
“Oil prices rose in the second part of December and extended gains following easing trade tensions between the US and China. It was announced on 13 December that the parties had reached an interim Phase 1 trade deal, which would reduce tariffs on imports between the two, and suspend any further escalation. Nonetheless, spot prices weakened slightly on lacklustre refining margins and high freight rates. Moreover, refinery disruptions in France due to strikes and a fire at Total’s Gonfreville refinery in northern France, raised concerns about a reduction in prompt crude demand,” reads the report.
Introduced on 16 June 2005, is currently made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
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