OPEC weekly oil price rises to nearly 85 dollars

09:10, November 16, 2010      

Email | Print | Subscribe | Comments | Forum 

The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) kept rising to 84.86 U.S. dollars per barrel last week, hitting the record high of this year, the Vienna-based cartel said Monday.

OPEC's weekly average oil price has kept rising for three consecutive weeks.

It continued to rise during the first four trading days last week, reaching above 85 dollars a barrel on day 10 and 11. But on the last trading day last week, it declined significantly from 85.81 dollars per barrel to 83.67 dollars, or fell by 2.49 percent.

Depreciation of the U.S. dollar is the main reason for rising in oil prices.

On the other hand, as figures of China showed an inflation of the Chinese economy last Thursday, speculations arose that the Chinese central bank would further hike interest rates or take other measures to curb China's economic growth, leading to a drop in international oil prices.

However, analysts believe that the weak U.S. dollar and the expectation of the world's major economies forced to introduce the quantitative easing policy will result in an excess supply of money and overly abundant global liquidity will no doubt push up the global commodity prices including crude oil.

The dollar index has kept decreasing from 88 point since early June this year, while the Fed's decision of a new round of quantitative easing policy this month exacerbated its decline.

Impacted by the continual depreciation of the U.S. dollar, the central bank of Japan has already announced in October a reduction of its interest rate.

Affected by the two major economies' currency devaluation, the EU's exports were severely suppressed. The possibility is increasing that the EU could follow the suit of the U.S. and Japan to implement a quantitative easing policy.

In addition, as winter approaches, the weather becomes an increasingly important factor of oil market speculation. Recently, the argument that Europe may have a cold winter for "once in thousand years" is widespread.

However, figures show that, due to the slow global economic recovery and the high U.S. oil inventories, the world crude oil supply remains relatively plentiful. According to OPEC's monthly oil report, there is an excess supply of global crude oil by 2010.

Therefore, the financial factor and market speculation would continue to be important factors affecting the international oil prices for a certain period of time.

Since August this year, the crude oil futures prices have risen by about 20 percent.


Source: Xinhua

(Editor:张茜)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion