Crude oil prices have experienced in October their biggest monthly drop since June 2012, reaching their lowest level in four years, in a context of persistent downward pressure, OPEC noted in its monthly report released on Wednesday in Vienna.
“Global markets in the short term continued to fall with a severe decrease of 10% in October, the highest since June 2012,” the report said, noting that this is the fourth consecutive month of decline.
“The main pressure comes down to fundamental market and a strengthened dollar,” notes the OPEC, which includes twelve countries and pump about a third of the world’s volume.
Falling prices should be the focus of discussions at the cartel meeting scheduled for 27 November in Vienna, dissension is doing day between supporters and opponents of limiting production.
“Since its peak in June 2012, the reference basket of OPEC has lost nearly $23″, about 85 dollars a barrel, its 2010 level, “reflecting the pressure on direct current price of crude” the report said.
According to the document, the rising dollar may have “a potential effect on the demand for non-dollarized economies.”
OPEC maintains however its forecast for growth in global oil demand in 2014 and 2015 unchanged, respectively to 1.05 million barrels per day (bpd) this year and 1.19 million bpd in 2015. It also continues to expect a faster global economic growth to 3.6% in 2015.
Some OPEC countries, such as Venezuela and Ecuador, publicly advocate a reduction in production to stop the fall in prices on the market, a scenario that the Kuwaiti Oil Minister Ali al-Omair, however, found improbable on Monday.