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54232
Oil price flattens out
statistikk
2011-10-07T10:00:00.000Z
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), Q2 2011

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Oil price flattens out

The increase in the crude oil price seen in the two previous quarters continued in April. The price fell back early in May. Later the crude price partially recovered its loss and was moving sideways during the rest of the 2 n d quarter.

Brent Blend

The average Brent Blend crude price in 2 n d quarter 2011 was 117.0/bbl USD against USD 105.5/bbl in 1 s t quarter.

From 1 April to 8 April the crude price increased by USD 8/bbl to USD 126.65/bbl, the highest level since July 2008. Market participants expected a long-lasting conflict in Libya and that the near total shut in of its crude export would be more noticeable when European refineries increased their petroleum production after a long maintenance period. Persistent fear that the tensions in the MENA-region should spread to Saudi Arabia, positive economic news regarding the American economy and a weaker dollar also contributed to the increase in the crude price.

In the following month the Brent Blend price remained relatively stable within the USD 121-126/bbl range.

The Brent Blend averaged at USD 123.1/bbl in April.

During the first week of May the crude price plummeted by USD 16/bbl to USD 109.13/bbl. On 5 May the Brent Blend crude price fell by USD 10.39/bbl, which is the biggest one-day loss ever registered. The sharp fall was mainly caused by a wave of negative macroeconomic news and lower oil demand growth in China and India. Persistent high crude oil prices undermined both the global economic recovery and the crude oil demand. The collapse in the oil price was also due to a broader sell-off in the commodity markets. In addition, the geopolitical risk was perceived by some market participants as reduced after the death of al-Qaeda leader Osama bin Laden.

From 9 May to 8 June the crude oil price fluctuated between USD 110/bbl and USD 118/bbl and the Brent Blend crude price averaged at USD 114.52/bbl in May.

On their 8 June meeting in Vienna OPEC decided to maintain their existing production. Oil market participants expected that OPEC would increase their output to make up for lost Libyan production.

This caused an increase in the crude prices. On 14 June the Brent Blend was traded at USD 120.16/bbl.

From 14 June to 21 June the crude oil price decreased by USD 6/bbl to USD 114.21/bbl.

On 23 June the IEA announced that the organisation would release 60 million barrels of strategic stocks. The purpose of IEA´s action was to compensate for the shut in of Libya´s crude export.

The announcement resulted in a sharp fall in the crude oil price. On 24 June the Brent Blend was traded at USD 105.12/bbl.

The crude price recovered at the end of the month and Brent Blend was traded at USD 112.48/bbl.

The increase was mainly due to better than expected economic key figures and significant supply outages among producers outside OPEC, especially in the North Sea.

The Brent Blend averaged at USD 113.9/bbl in June.

The average Brent Blend crude oil price in the 3 r d quarter is USD 113/bbl when nine days remaining.

Global production of crude oil

According to the International Energy Association (IEA) Monthly Oil Market Report, the global production of crude oil came to 87.4 million barrels a day in 2010. This is an increase of 1.8 million barrels a day compared with the crude production in 2009.

The total production in the 2 n d quarter 2011 is estimated at 87.4 million barrels a day by the IEA. This is a decrease of 1.1 million barrels a day compared with the production in the previous quarter and at the same level as the production in 2010.

The total non-OPEC production in 2011 is estimated at 52.8 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 2010.

Global demand for crude oil

According to the IEA Monthly Oil Market Report, the global demand for crude oil came to 88.2 million barrels a day in 2010. This is 2.7 million barrels a day higher than the crude oil demand in 2009.

IEA estimates the global crude oil demand in 2011 and 2012 to be 89.3 and 90.7 million barrels a day respectively.

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