OPEC weekly oil price keeps declining

07:51, November 30, 2010      

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The weekly average oil price of OPEC declined slightly to 81.43 U.S. dollars per barrel last week, the Vienna-based cartel said Monday.

The price begun to fall in the previous week, the first decline in three weeks.

OPEC (Organization of Petroleum Exporting Countries) saw thin trading due to the Thanksgiving Day holiday last week, and there was also no major changes in the supply-demand relationship.

Meanwhile, as the world's crude oil market did not show any significant changes to affect oil prices, both the international oil prices and OPEC prices are expected to continue fluctuating.

Concerns over the Korean Peninsula tension last week made investors temporarily shift their focus from the Asian markets to the U.S. dollar, gold and other hedging products. The strength of dollar therefore caused a certain pressure on oil prices.

Also, figures showed that the ICE U.S. Dollar Index has risen to 80.362, the highest since the end of September, while the euro was weakened due to the contagious fears of the current Irish debt crisis.

As the European Union (EU) and the International Monetary Fund had announced an 85-billion-euro (113-billion-U.S. dollar) rescue package to Ireland, analysts said this would help restore investors' confidence in Europe and thus boost EU energy demand on way to recovery.

In addition, as the peak season of heating oil demand in the Northern Hemisphere is coming, the underlying trend in demand growth will also support the world crude oil market.

OPEC Secretary General Abdalla Salem El-Badri said the organization was committed to stable oil supply.

If there is a shortage of supply, OPEC will take action. But if the change in oil prices is caused by speculation, OPEC may not necessarily take action, Badri said.

Source: Xinhua


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