Home Economy OPEC crude price hovers just below $110

OPEC crude price hovers just below $110

By DPA,

Vienna : The price for crudes produced by the Organization of the Petroleum Exporting Countries (OPEC) continued its climb and was hovering just below the $110 mark, OPEC said Wednesday.

One barrel of crude oil from OPEC’s reference basket stood at yet another record high of 109.92 dollars Tuesday, up 99 cents from the previous day.

Hopes for OPEC to increase production in the near future were dashed as the cartel’s secretary general Abdalla Salem el-Badri ruled out an extraordinary meeting until the next regular meeting, scheduled for September.

Several factors, among them unrest in OPEC member Nigeria, labour strike in Scotland and France, the expected announcement of another drawdown on US gasoline stocks, strong Asian oil demand and the weak US dollar, were affecting the market, OPEC analysts said.

Crude oil futures have surges about 24 percent since the beginning of the year, they said.

After years of rising prices, there was still no clear indication on where prices would finally settle, the analysts said.

OPEC calculates an average basket price based on 13 important brands produced by cartel members. The 13-member organization produces about 40 per cent of the world’s crude.