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OPEC oil price continues to drop

02 July 2012 20:01 (UTC +04:00)

Baku-APA. The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) dropped to 90.77 U.S. dollars a barrel last week, reaching the lowest level since the last week of 2010, the Vienna-based cartel said Monday, APA reports quoting Xinhua.

OPEC oil price has dropped for 9 consecutive weeks. Over the passing two months, OPEC weekly average price declined by 22 percent, or 24.93 dollars.

On the other hand, it is worth noting that, during the last five trading days, OPEC daily price kept rising from 88.92 dollar on Monday to 92.99 dollars a barrel on Friday.

The increasingly worsening European debt crisis, the week U.S.’s economic recovery, as well as the slowing down economic growth of the emerging economies like China and India, reduced the confidences on the perspectives for global economic growth to different extant, consequently suppressing the international oil prices.

Last weekend, the EU decided to mobilize 149 billion U.S. dollars to stimulate the economic growth, which provided a possible change in the euro zone’s economic decline, boosting confidence on global economy, and further stimulating the demand for crude oil.

Besides, the Western oil embargo on Iran comes into effect on July 1, which may also become a topic of speculation on the international crude oil market.

However, overall, in the near future, it seems that the international oil prices still lack of driving force: the implementation and effect of the EU new economic growth protocol remain unknown; The U.S.’s recent economic figures are also difficult to form a significant support to the oil price.