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54228
Stabilized and increasing crude prices
statistikk
2011-02-25T10:00:00.000Z
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 2010

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Stabilized and increasing crude prices

After the volatile prices seen in 2008 and 2009, the crude oil prices stabilized in 2010 and Brent Blend was traded within the USD 70-95/bbl range during the year.

Brent Blend

The average Brent Blend crude price in 2010 was USD 80.3/bbl - 28.5 per cent higher than in 2009.

After the sharp fall in the autumn of 2008 the crude oil price gradually recovered during 2009. From the 4 t h quarter of 2009 the Brent Blend crude price stabilized and was traded within the interval between USD 70/bbl and USD 85/bbl to the end of the 3 r d quarter of 2010. During the 4 t h quarter of 2010 the crude price increased further and reached its highest level in 2010 at USD 94.75/bbl on 31 December.

From the middle of December 2009 to 6 January the Brent Blend increased by USD 10/bbl to USD 81.89/bbl, mainly due to unusual cold weather in North America and Europe.

During the rest of January and the first week of February the crude price fell and Brent Blend was traded below USD 70/bbl on 5 February. Warmer weather in the Northern Hemisphere and the financial instability in the eurozone contributed to the decrease in crude price.

After a sharp increase in the middle of February the crude price trended sideways and the Brent Blend crude oil price was traded around USD 80.00/bbl through March. European leaders and financial institutions showed willingness to handle the sovereign debt crises in Greece. This resulted in renewed optimism regarding the global economy. In addition, escalating political pressures in Nigeria and Iran gave rise to fears of oil supply disruptions.

The Brent Blend averaged at USD 77.37/bbl in 1 s t quarter.

In April the crude price increased further and averaged that month at USD 85.75/bbl. Brent Blend reached USD 88.94/bbl on 3 May. Weak crude oil demand and ample physical oil supplies were overshadowed by increased expectations for an accelerating economic recovery.

From 3 May to 25 May the crude price fell by almost USD 20/bbl to USD 69.55/bbl. The deepening The Eurozone crisis deepened and resulted in a shift in the market sentiment and led to a decline in both financial and oil markets.

In June the crude price traded in the interval between USD 72/bbl and 79/bbl. The price moved within this range in tandem with the financial and equity markets.

The Brent Blend averaged at USD 79.41/bbl in 2 n d quarter.

Disappointing macroeconomic news from the US and China resulted in decreasing crude price in the start of July, and Brent Blend was traded at USD 71.45/bbl on 6 July. During the rest of July the crude price gradually increased and by 3 August Brent Blend was traded at USD 82.68/bbl. The rise was due to stronger financial markets and supply outages in the Gulf of Mexico and the North Sea.

From 3 August to 24 August Brent Blend decreased by USD 10/bbl to USD 82.31/bbl on more pessimistic outlooks regarding the global economic recovery. In addition, data showed increasing oil inventories.

In September the crude oil price gradually rose and Brent Blend was traded at USD 82.31 on 30 September. The increase was due to higher than expected crude oil demand, a weaker dollar and a rebound in financial markets.

The Brent Blend averaged at USD 76.96/bbl in 3 r d quarter.

During October Brent Blend was traded in the USD 82-85/bbl range. From 21 March to 6 April the Brent Blend price increased from USD 83.15/bbl to USD 88.96/bbl. A stronger than expected oil demand and significant draws in crude oil stocks in OECD contributed to the increase. In addition, the US Federal Reserve announced a new round of quantitative easing. This resulted in a weaker dollar and gave new impulses to global economic growth. Both these effects contributed to the rise in the crude oil price.

From 23 November to 31 December Brent Blend increased gradually from USD 83.25/bbl to USD 94.75/bbl. The rise was mainly due to strong crude oil demand and unusual cold weather in most of the Northern Hemisphere.

The Brent Blend averaged at USD 87.45/bbl in 4 t h quarter.

Global production of crude oil

According to the International Energy Association (IEA) Monthly Oil Market Report, the global production of crude oil came to 87.3 million barrels in 2010. This is an increase of 2.1 million barrels a day compared with the crude production in 2009.

The total non-OPEC production in 2011 is estimated at 53.5 million barrels a day by the IEA. This is an increase of 0.7 million barrels a day compared with the actual non-OPEC production in 2010.

Global demand for crude oil

According to the IEA Monthly Oil Market Report, the global demand for crude oil came to 87.8 million barrels a day in 2010. This is 2.8 million barrels a day higher than the crude oil demand in 2009.

The global crude oil demand in 2011 is estimated at 89.3 million barrels a day by the IEA.

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