Saudi Arabia: OPEC oil prices decline at the start of July
July 1, 2015
On 1 July, the average price of the Organization of Petroleum Exporting Countries (OPEC) oil basket stood at USD 58.8 per barrel, which represented a 2.9% decline over the same day of the previous month. On an annual basis, oil prices were down by 45.9%. Oil prices have recovered some of the ground lost since mid-2014 and the 1 July reading marked a 41.7% increase over the USD 41.5 per barrel tallied on 12 January, when oil recorded the lowest price since 2009.
In recent weeks, oil prices faced downward pressure mainly due to high crude-oil stockpiles in the United States and increasing oil supply in some key producers. Expectations of a successful nuclear deal between Iran and international powers, which have the potential to increase oil supply, and uncertainty regarding the debt crisis in Greece have also played a role in the fall in oil prices.
Although the OPEC decided to maintain its oil production quotas at 30 million barrels per day (mbpd), the oil cartel pumped 30.98 mbpd in May, according to the latest OPEC Monthly Oil Market Report. Saudi Arabia’s oil production reached 10.11 mbpd in May, which was slightly down from the 10.11 mbpd tallied in April.