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OPEC Oil Prices Drop to New Low in Three Months

Posted on: Friday, 11 November 2005, 09:00 CST

OPEC oil prices drop to new low in three months

VIENNA, Nov. 11 (Xinhua) -- The average price of the Organization of Petroleum Exporting Countries (OPEC) basket of 11 crudes dropped to a new low in nearly three months on Wednesday, standing at 52.20 US dollars a barrel, down 0.11 dollar from the previous trading day, the Vienna-based OPEC Secretariat said Thursday.

The organization's oil prices have lost more than nine dollars from the record high of 61.37 dollars per barrel on Sept. 1.

Analysts said the warm weather in the United States and Europe has reduced the market demand for heating oil, resulting in a continued decrease of oil prices in the world market.

In addition, the oil production and refinery facilities in the Gulf of Mexico are returning to normal after hurricanes Katrina and Rita hit the region, thus easing the anxiety for a possible shortage of crude supply in the international market.

The oil production and refinery facilities in the Gulf region are expected to return to normal by January 2006.

Meanwhile, a report by US energy information provider Platts showed that the daily crude output of 11 OPEC members dropped to 30.07 million barrels in October, about 240,000 barrels lower than the previous month.

In Iraq alone, the daily output decreased to 1.8 million barrels from September's 1.99 million barrels, said the report.

Source: Xinhua News Agency - CEIS

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