Tuesday, August 10, 2010

OPEC oil keeps increasing for four consecutive weeks


The weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) kept rising for four consecutive weeks, reaching $78.24 per barrel last week, the Vienna-based cartel said Monday.

In the first week of July this year, OPEC weekly average oil price has dropped to $70.63 a barrel, following a persistent increase to 72.93, 73.43, and $74.01 in the second, third and fourth week respectively.

In the first week of August this year, OPEC weekly average oil price rose by $4.23 to $78.24 per barrel, showing the highest level since the first week of May this year.

Over the past month, the OPEC oil price showed an upward trend with fluctuation, which had the lowest daily price of $69.05 per barrel and highest level of $78.88.

To a certain extent, this trend also reflected that, on the one hand the market was encouraged by the prospects of economic recovery. On the other hand, however, the international oil market was also suppressed by weak economic figures of the major oil consuming countries.

The economic figures of the US particularly have obvious impact on the global crude oil market.

Last Friday, the figures released by the Labor Department showed that the U.S. unemployment rate in July remained at a high level of 9.5 percent, which aroused concerns on prospects of the U.S. economic recovery once again, leading to a further weakening of international oil prices.

For a period of time in the future, a series of disappointing macroeconomic figures of the U.S. and other major oil consumers would gradually show their negative impacts, resulting in an increase in concerns on future global economic recovery. Therefore, the international oil price is likely to be suppressed.

Without other incentives, the international oil price would possibly even have a downward trend with fluctuation.

In addition, the experts also generally agreed that, despite of the undeniable global economic recovery, it would take some time until the achievement of real recovery and its process remains slow and repeating, which means, it would be limited demand growth in international crude oil.

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