The price of West crude oil continues to fall for the third time in a row since last week’s reports of the China’s weak demand from the industrial activity. Meanwhile the Organization for the Petroleum Exporting Countries (OPEC) is due to release the review of its aim for oil production in a meeting scheduled for May 31.
West Texas Intermediate crude oil traded below $94 a barrel since last Friday and later dropped on Tuesday to 0.62% at $93 .57 a barrel ,while Brent futures fell 0.11% to $102.51 a barrel .
According to a survey taken by Bloomberg news, the U.A.E members of the Organization of Petroleum Exporting Countries are expected to keep their output target at 30 million barrels per day when the members meet in Vienna .The U.A.E’s energy minister, Suhail Mohammed Al Mazrouei, says the current prices are “suitable and fair, “according to the official WAM news agency.
The OPEC members gathering this week would tackle the disagreements regarding possible splits between the African and Arab members of the OPEC and the disagreement over the impact of the increase in U.S oil production.
According to the minister OPEC, Global demand of crude oil is predicted to remain weak throughout the year. Last Wednesday, the Fed Chairman Ben Bernanke said that the central bank would continue to purchase assets until the labor market improves. The Oil prices dropped ever since the Fed Chairman’s statement.
Exports to the U.S from three of OPEC’s African members, Angola, Algeria and Nigeria, have fallen to the lowest in decade’s .Falling to 41% between 2011 and 2012 .While exports from Saudi Arabia to the U.S have increased by 14% in 2012.
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