Sunday, December 14, 2014

The head of OPEC said world oil prices are too low – RBC

The head of OPEC said world oil prices are too low – RBC

OPEC Secretary General Abdullah al-Badri

​​Photo: REUTERS 2014

Speaking in Dubai, Al Badri said oil prices fell below those indicators that meet market fundamentals. The head of OPEC did not specify what price he considers the best in the circumstances, according to Reuters.

Speaking in Dubai, Al Badri said oil prices fell below those indicators that meet market fundamentals. The head of OPEC did not specify what price he considers the best in the circumstances, according to Reuters. According to him, the cartel has no goal to bring the cost of a barrel up to a certain level.

Also, El-Badri, dismissed suggestions that OPEC’s decision to uphold the current production quotas was dictated from outside. “Some say that the cartel decided under US pressure. Some argue that it is directed against Russia and Iran. All this is not true, “- said the head of OPEC.

Also, Al Badri urged Gulf countries continue to invest in oil exploration and production in spite of the market situation, in order to further prevent new jumps.

Application Al Badri was made due to the ongoing recession, including in the Middle East. Qatar stock index fell at the beginning of the next trading 6.5%, the index in the UAE – 3.9%. The analysts surveyed by Bloomberg, note that bidders bearish, expecting a further decline in oil prices. However, they suggest that the market will recover soon because depreciating stocks have become attractive to investors.

Oil fell sharply after the November OPEC’s decision to maintain current levels of production. After long discussions, the members of the cartel came to the conclusion that the oil market will stabilize without outside influence.

The cost of a barrel of North Sea Brent, which is calculated based on the price of Russian Urals, Dec. 12 dropped to the level of 61 dollar 65 cents, which is the lowest level in the last 5 years.

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