By DARA BUTTERFIELD
Brent crude oil has fallen by more than $2 to it’s lowest level since September 2010, after the OPEC meeting in Vienna to discuss the future of the cartel which announced continued levels of production yesterday.
The fall in the oil price has been causing concern for several members of the oil cartel, as most require a price above $80 a barrel to balance their government budgets and many need prices to be above $100 a barrel.
HE Abdourhman Ataher Al-Ahirish, Libya’s Vice Prime Minister for Corporations and President of the OPEC Conference, said:
“Although the OPEC Reference Basket had been fairly stable during the last three and a half years, with the annual average ranging between roughly $105 and $110 per barrel since mid-June, the Basket has lost nearly 30% of its value – or more than $30 per barrel.
“The recent price developments are a sign that the oil market is currently searching for stability and balance.”
On Wednesday, the Saudi Oil Minister, Ali al-Naimi, and his United Arab Emirates counterpart, Suhail bin Mohammed al-Mazroui, said they expected the oil market to stabilise itself.
The market price of oil decreased before the meeting in anticipation of this decision and the move was not unexpected. In the past OPEC had the option of decreasing supply to increase and stabilise the market price doing so now could help their competitors and lose them influence over the market.
To get more information about the 166th OPEC meeting in Austria, which was concluded yesterday, go to OPEC
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