TASS KIT. 8 December 2015 the price of Brent crude for the first time since February 2009 during the auction fell below $40 per barrel. Brent is the reference brand in the international market to determine the cost of oil, including Russian. Revision-DOSSIER prepared background material on the dynamics of oil prices since the early 2000s
The increase in oil prices in early 2000-ies
In 2000, prices were at $30 per barrel. Long and almost uninterrupted growth in oil prices began in March 2002, Experts attributed this to a number of factors: the war in Iraq, the reduction of oil production in Mexico, the UK and Indonesia, the growth in oil consumption and depletion legkodelimae reserves in the Persian Gulf.
Oil prices for 30 years
February 29, 2008 the price of oil Brent for the first time in history exceeded $100 per barrel. Price growing market reacted to any instability in the middle East: June 6, oil prices rose to a record $10,45 per day because of rumors that Israel might strike a missile and bombing strike against Iran.
The historical high prices of Brent crude oil was recorded July 4, 2008 – $143,95.
The collapse in oil prices in 2008
The beginning of the global financial and economic crisis in 2008 led to a price collapse – to $33,73 (26 December). After only six months, since June 2009 the price of Brent began to slowly grow. On average, in 2009 it amounted to $61,74 per barrel.
In March and December 2010 the level of prices for oil stabilized at the level of $70-80 per barrel. At the end of 2010 growth was resumed. On 1 February 2011, a barrel of Brent from the beginning of the political crisis in Libya has again gone up in price $100 in April and reached the level of $124-126. The growth of world prices, due to the sharp decline proposals of Libyan oil, has managed to contain due to the supply of strategic reserves by the International energy Agency (IEA) and the US (about 90 million barrels in mid-2011).
Until February 2012 the price of Brent hovered around $105-115 per barrel. After reaching a peak on March 13, 2012 ($128,14), the price started falling due to the economic problems in the Eurozone, exacerbated by the crisis in Greece.
June 1, 2012 the price of oil dropped below $100 ($98,63), but were able to return to the level of $100-115 during the second half of July. This was due to the worsening of the armed conflict in Syria, as well as a fire at a major refinery in California on 7 August 2012 and a number of other factors. The average price in 2012 was $111,63.
In 2013, the quotes of Brent briefly dipped below $100 (April and June). The average price was $108,56.
In January-August 2014 average price for Brent crude was $107,75 per barrel. At the end of summer was celebrated falling fuel demand in major consumer countries, the USA and China, there was excess supply due to high levels of oil production in the US and supply from Saudi Arabia. Also at the end of August after a year break, resumed oil supplies from Libya.
Beginning in fall 2014
11 September 2014 published monthly report the International energy Agency, which lowered its forecast for global oil demand in 2014, with up to 92,9 92,6 million barrels per day. After that began the decline in oil prices. The trend was strengthened in early October, after the review of the world economy the International monetary Fund (IMF), which had reduced the forecast for global growth in 2014 from 3.4% to 3.3%, and against the background of negative forecast of the energy information Administration of the U.S. demand for oil.
© Viktor Drachev/TASS
Novak: OPEC decided to bring his quota to the real production
9 October Brent crude fell below $90 per barrel. Following this, it became known that Iran and the world’s largest supplier – Saudi Arabia has reduced oil prices under export contracts. The fall in prices continued after October 14 in the progress report, IEA lowered its forecast for demand for oil in 2014 to 92.4 million barrels per day, with the prospect of growth in 2015 to 93,25 million barrels. Also an important factor in the fall in the cost of Brent was the unwillingness of the Organization of countries-exporters of oil (OPEC) to agree on production cuts.
At the auction of 12 November 2014 the price of Brent dropped to $80 per barrel. On November 14 in another report, the IEA forecast oil demand in 2015 was reduced to 92.6 million barrels per day, which accelerated the drop in prices. December 31, 2014 quotations reached $55,27 per barrel, thus, the year oil prices dropped by 51%.
Oil under $50
On 5 January the price of Brent fell below $50, the minimum price was registered on January 13 – $45,13 per barrel. Then began a temporary recovery quotes: February 1, prices returned to the level of $50 a barrel, on 13 February, the oil started to cost more than $60 a barrel, then hovered around $55-60. The maximum price for Brent crude in 2015 was recorded may 13 – $66,33 per barrel.
Oil prices have resumed falling in the second half of July. This was caused by a crisis in the stock market in China, Iran plans to increase oil exports after the lifting of sanctions and that the U.S. continues to put into operation new production capacity.
August 3, 2015 for the first time from January 2015. prices fell below $50 a barrel. Some time after at $50, but in the second half of August continued to fall.
August 24, exchange quotations of oil Brent for the first time since March 2009 dropped below $45 per barrel, but in September – November stabilized at $45-48.