Oil prices lower by more than 5% on the results of the OPEC meeting

Oil prices lower by more than 5% on the results of the OPEC meeting


As of 21.11 GMT the price of January futures for North sea petroleum mix of mark Brent fell on 5,22% – to 40,76 USD per barrel, dropping below 41 dollars per barrel for the first time since February 23, 2009.

MOSCOW, 7 Dec. The world prices for oil on Monday decrease by more than 5%, reacting to the decision by OPEC to maintain current quotas for oil production, according to AFP.

As at 21.26 GMT the price of January futures for North sea petroleum mix of mark Brent fell by 5.1% to 40,81 dollars per barrel, falling below the 41 dollars per barrel for the first time since February 23, 2009. The price of January futures for oil of mark WTI fell by 5.6% to 37,73 dollars per barrel. While a daily low of Brent crude oil amounted of 40.60 per barrel, and at least per day of WTI — 37,51 dollar.

OPEC at a meeting on Friday in Vienna decided not to change quotas on oil production, amounting to 30 million barrels per day, thus decided to maintain the level of actual production that exceeds the quota by 1.5 million barrels. Officially, the quota for 2011 is 30 million barrels a day but OPEC regularly exceeds it.

In addition, investors expect the base rate increase by the fed in December. Expectations are pushing the U.S. currency to rise, which negatively affects the dynamics of commodity prices.

Since the beginning of summer 2014 to early 2015, oil prices have fallen by more than half, from 115 to 48.5 dollars per barrel Brent. The collapse of prices last year increased the November decision of OPEC to maintain production quotas. This year the prices have not climbed above $ 67, and averaged about 55 dollars. In the period from August to November, the average price was far below $ 48 a barrel. When are the forecasts for 2016 also remains pessimistic.

“In 2016 the growth in production will still be more than the growth of demand”, — said Director General of Total Patrick Pouyanne (Patrick Pouyanne), quoted by newspaper The Telegraph.