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8679
Volatile crude oil prices
statistikk
2010-02-08T10:00:00.000Z
Energy and manufacturing
en
ogintma, Oil and gas activities, international market conditions (discontinued), petroleum production, oil production, oil demand, oil prices, crude oil, brent blend, natural gas, condensate, NGLOil and gas , Energy and manufacturing
false

Oil and gas activities, international market conditions (discontinued), Q4 2009

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Volatile crude oil prices

The average Brent Blend crude price in 2008 was USD 96.2/bbl - 35.6 per cent higher than in 2007. The average crude price decreased to USD 62.7/bbl in 2009 - 36.4 per cent lower than in 2008.

2008

Brent Blend

The average Brent Blend crude price in 2008 was USD 98.5/bbl against USD 72.7/bbl in 2007. From 2003 to 2008 the average Brent Blend increased by 246 per cent.

The crude oil prices fluctuated significantly during the year. The price went below USD 90/bbl in January and reached its highest level at USD 146/bbl in primo July. The crude oil prices fell sharply during the autumn and went below USD 35/bbl in late December.

The sharp increase in the first half of the year was mainly due to a strong increase in crude oil demand in Asia, Middle East and Latin America. In addition, the price increase was contributed by very low spare capacity in crude production, geopolitical concerns regarding Irans nuclear programme and unusual low build-up of crude stocks in 2 n d quarter.

From 3 July to 12 September the Brent Blend price fell by about USD 50/bbl. The high level of crude prices and the recession in the US resulted in a sharp decrease in crude demand in the OECD- area. Increased OPEC crude oil production did also contribute to a diminishing excess demand in the oil market. New fields came on stream in Nigeria, Angola and Saudi Arabia and contributed to an increased spare capacity.

From 12 September to 31 December the Brent Blend price fell by another USD 60/bbl.

Global production of crude oil

According to the International Energy Association (IEA) Monthly Oil Market Report, the global production of crude oil came to 86.5 million barrels in 2008. This is an increase of 0.9 million barrels a day compared with the crude production in 2007.

The total non-OPEC production in 2008 came to 49.7 million barrels a day by the IEA. This is a decrease of 0.7 million barrels a day compared with the actual non-OPEC production in 2007. The OPEC production increased by 1.6 million barrels a day and came to 36.8 million barrels a day in 2008.

Global demand for crude oil

According to the IEA Monthly Oil Market Report, the global demand for crude oil came to 86.2 million barrels a day in 2008. This is a decrease of 0.4 million barrels a day compared with the crude demand in 2007.

The OECD crude oil demand decreased by 1.6 million barrels a day in 2008 compared with the demand in 2007.

2009

Brent Blend

The average Brent Blend crude price in 2009 was USD 62.7/bbl - 36.4 per cent lower than in 2008.

The crude oil prices gradually recovered during 2009 after the sharp fall in the autumn 2008.

The Brent Blend fell to its lowest level at USD 39.50/bbl on 18 February and reached its highest level at USD 79.69/bbl on 21 October.

The collapse in crude oil demand during the autumn 2008 was eventually offset by significant production cuts in OPEC. The crude prices settled in the USD 40- 45/bbl range during the winter.

From 11 March to 11 June the crude prices gradually increased from USD 41.40/bbl to USD 71.79/bbl. Weak crude oil demand was overshadowed by continued production cuts in OPEC, bullish stimulus plans announced by governments and international financial institutions and subsequent recovery in the financial markets and contributed to the rise in crude oil prices.

From 29 June to 8 July the crude price decreased by about USD 10/bbl to USD 60.43/bbl due to growing concerns about the path of recovery and weaker than expected gasoline demand season in the USA.

From 14 July to 5 August the crude price increased by USD 15/bbl to USD 75.51/bbl in tandem with stronger equity and financial markets.

The oil prices continued to develop in relative strong correlation with macro financial market activity during the autumn. The development in both the oil prices and the leading financial indexes were close connected to the development in economic key figures which indicated how fast, strong and robust the global economy would recover. The direction of the oil price was in a way disconnected to the fundamental realities in the physical oil market, which still was characterized by weak oil demand and high levels of stock. During the crises participants in the oil market had built up a confidence in OPECs ability to clear the oil market by further production cuts if necessary. The oil prices were therefore in high degree driven by the development in the expectations to future crude oil demand rather than actual crude oil demand.

From primo August to the mid October the Brent Blend crude oil was traded within the interval between USD 65/bbl and USD 75/bbl. The oil price increased to almost USD 80/bbl in ultimo October and remained strong within the USD 75-80/bbl- range throughout November. Crude oil prices fell

The average Brent Blend crude price in November was USD 77.58/bbl. In the first half of December the crude prices fell back to the USD 71-75/bbl- range and subsequently turned back to the USD 75-80/bbl- range between Christmas and New Year's Eve.

Global production of crude oil

According to the International Energy Association (IEA) Monthly Oil Market Report, the global production of crude oil came to 84.9 million barrels in 2009. This is a decrease of 1.6 million barrels a day compared with the crude production in 2008.

The total non-OPEC production in 2010 is estimated at 51.5 million barrels a day by the IEA. This is an increase of 0.2 million barrels a day compared with the actual non-OPEC production in 2009.

Global demand for crude oil

According to the IEA Monthly Oil Market Report, the global demand for crude oil came to 84.9 million barrels a day in 2009. This is 1.3 million barrels a day lower than the crude oil demand in 2008.

The global crude oil demand in 2010 is estimated at 86.3 million barrels a day by the IEA.

Tables [Updated tables published 5 November 2010]