KUWAIT CITY, Sept 18, (Agencies): OPEC’s oil price rose $12.3, some 41 percent, during Q2 2016 as compared to the year’s Q1, reaching $42.3 per barrel, according to a report released by the Organization of Arab Petroleum Exporting Countries (OAPEC).
Continuing drop of the US crude output, supplies’ disruption in some producing countries, weak dollar, and hiking global demand for oil contributed to the crude prices’ bullish trend during Q2 2016.
However, the prices of OPEC’s crudes — prompt delivery — was the highest since Q3 2015, with a $17.6 per barrel decline, 29.5 percent, as compared to the corresponding quarter of the past year.
The second quarter of this year witnessed trades of the Brent blend at higher levels as compared to the American crude of West Texas — since the second quarter of 2015.
However the divergence noticeably narrowed during the current quarter, reaching $0.02 pb, lower than $0.7 pb in the previous quarter, and USD four during the corresponding quarter of last year (in favor of the Brent). This is largely attributed to the demand hike for the West Texas crude while abundant supplies and global demand growth contributed to pushing the Brent prices high.
There was noticeable impact of the bullish oil prices on rates of crude derivatives during Q2 2016 in all major markets.
Gasoline average price climbed in the US Gulf Coast market, during Q2 2016, by 30 percent compared to the previous quarter, reaching $67.9 pb. In the Mediterranean market, it rose by 32 percent as compared to the previous quarter, reaching $60.6 pb.
In the Rotterdam market, the average price rose 31 percent as compared with the previous quarter reaching $68.7 pb. As to the Singapore market, it climbed 17 percent as compared to previous quarter, settling at $57.6 pb.
The OAPEC report forecast improvement in the global economy this year and 2017, whereas the oil demand would climb.
Meanwhile, OPEC members may call an extraordinary meeting to discuss oil prices if they reach consensus at an informal gathering in Algiers this month, OPEC Secretary-General Mohammed Barkindo said during a visit to Algeria, the country’s state news agency APS reported on Sunday.
Barkindo said he was optimistic about the meeting in Algeria on Sept. 26-28. He has previously said discussions in Algiers will be consultations and no major decisions will be made during talks with OPEC and non-OPEC producers.
“The informal gathering was proposed as a move to having an extraordinary meeting with the aim of taking decisions to stabilise the market,” Barkindo said.
Algeria’s Energy Minister Noureddine Bouterfa last week said there was a consensus among OPEC and non-OPEC members about the need to stabilise the oil market, and has been pushing for a price around $50 to $60 a barrel.
“Algeria has a proposal for participants in the Algiers meeting. Consultations with our partners show there is a consensus around the need to stabilise the market. That is already a positive,” Bouterfa said.
The secretary-general of the Organization of the Petroleum Exporting Countries has said the group is not seeking a definite price range for oil but stability for the market.
Russia, Iran and other major oil producers are due to take part in the Algiers meeting. Several OPEC producers have called for an output freeze to rein in an oil glut that triggered a price collapse in the last two years, hitting the revenues of major producers.
Saudi Arabia and non-OPEC member Russia agreed this month to cooperate in oil markets, saying they could limit future output.