Saudi Arabia: OPEC oil prices continue to increase in March
March 2, 2015
On 4 March, the average price of the Organization of Petroleum Exporting Countries (OPEC) oil basket jumped to USD 56.1 per barrel. The print represented a 35.3% increase over the USD 41.5 per barrel tallied on 12 January, when oil recorded the lowest price since 2009. That said, oil prices are still 47.2% below the level observed on the same day last year.
The recent surge in oil prices mainly reflected the announcement by some major crude producers of a reduction in capital expenditure on oil facilities as well as a significant drop in oil drilling in the United States. Analysts, however, warn that the global oil market is still oversupplied and that the upward trend in oil prices is likely to be short-lived.
According to the latest report from OPEC, Saudi Arabia’s oil production reached 9.68 million barrels per day (mbpd) in January, which was up from the 9.59 mbpd tallied in December.