Saudi Arabia: Upward trend in OPEC oil prices continues in May
May 6, 2015
On 6 May, the average price of the Organization of Petroleum Exporting Countries (OPEC) oil basket stood at USD 65.0 per barrel, which represented a sizeable 22.1% increase over the same day of the previous month. Nonetheless, oil prices are still 37.4% below the level observed on the same day last year. Oil prices have recovered some of the ground lost since mid-2014 and the 6 May reading marked a 56.5% increase over the USD 41.5 per barrel tallied on 12 January, when oil recorded the lowest price since 2009.
Oil prices have been on an upward trend in recent weeks, mainly due to rising tensions in the Middle East, disruptions in oil supply in Libya and a relatively weaker U.S. dollar. Moreover, Saudi Arabia increased its official selling prices due to stronger demand. While oil prices are still cheap compared to the past years, some analysts suggest that the global oil glut has started to fade.
According to the latest report from OPEC, Saudi Arabia’s oil production reached 10.01 million barrels per day (mbpd) in March, which was up from the 9.66 mbpd tallied in February.