Market

Geopolitical developments behind fluctuating oil prices – OPEC

VIENNA, The geopolitical developments and the global oil reserves situation are the reason for the fluctuating oil prices between around USD 110 pb in 2012 and about USD 66 recently, said OPEC’s secretariat.

Since the signing of the Vienna Convention 2016 by the oil exporting countries from within and outside OPEC, which provides for the reduction of production in order to maintain fair prices that take into account the interests of producers and exporters, the prices of OPEC basket returned to a reasonable level, said OPEC in its annual statistical bulletin.

The bulletin underlined that when calculating the average price of OPEC’s monthly basket, the price of crude oil in the first six months of 2019 amounted to USD 58.74 pb in January then went up to USD 63.83 pb in February and it continued to rise to USD 66.37 pb in March, reaching a record high of USD 70.78 pb in April.

At the same time, the prices of the OPEC basket of crude oil prices recorded a slight decline in May to reach about USD 70 pb before falling more clearly in June to USD 61.18 pb.

Economic analysts have linked the sharp drop in the price of OPEC’s monthly basket of crude to the rise in US and Gulf crude reserves, as well as fears of a global economic slowdown as a result of a political crisis a few months ago between Washington and Iran.

On the annual average price of crude, the statistical bulletin said that this year it reached USD 74.74 pb compared to USD 69,78 pb in 2018 and USD 52.43 pb in 2017 and USD 40.76 pb in 2016 and USD 49.4 pb in 2015.

The average price in 2014 was about USD 96.99 per barrel, compared to USD 105.97 pb in 2013 and USD 109.45 pb in 2012.

Source: Kuwait News Agency