OPEC weekly oil price slips back under 80 U.S. dollars

19:56, October 25, 2010      

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The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) fell to 78.95 U.S. dollars per barrel last week, the Vienna-based cartel said Monday.

Following oscillations over nearly five months, OPEC weekly average oil price finally returned to above 80 dollars a barrel at the beginning of this month. However, it fell back under 80 dollars after only two weeks.

Last week, OPEC oil price continued its downward trend with small-amplitude oscillations.

Nevertheless, market analysts believed that the supply and demand relationship on the international crude oil market remained unchanged, attributing the continual decline in OPEC oil price to the technical part of the normal fluctuations.

The repeated oscillations in oil prices also reflected that the current growth in crude oil demand remained weak and its futures markets remained uncertain.

Since the U.S. economy continued to slump, the expectancy of a new round of monetary easing policy to advance U.S. economic recovery, which would be soon unveiled by the Federal Reserve, was intensified.

The loose monetary policy may not only stimulate the economy, but also lead to further decline in the dollar.

In addition, according to the German Institute for Economic Information (IFO: Information und Forschung), the business climate index in October of this year reached 107.6, representing the highest level over the past three and a half years. To a certain extent, it improved the expectations on economic recovery in Europe.

All the above factors will support the international oil prices.

Overall, however, for some time, the process of world economic recovery is still hard to have substantive progress. Therefore, the weak U.S. dollar and the continued downturn in the macroeconomic figures would be the major factors affecting the international oil prices.

Source:Xinhua

(Editor:黄蓓蓓)

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