OPEC Considers Current Oil Prices as Beneficial

The current oil prices are not dangerous to the world economy; it is, in fact, contrary to that because they are supportive of energy investments, according to the recent statement of the secretary general of the Organization of Petroleum Exporting Countries (OPEC).

The average crude price per barrel for this year is about $110.

After early indications of stabilization in the global economy, the previous month has faced consecutive setbacks as the recovery of the United States and Europe stuttered.

Abdallah Al-Badri, OPEC’s secretary general, said during the group’s crude conference in Paris that they believe the current level of oil prices is supportive of the crude future prices they expect.

He added that the price of oil at this time is comfortable for both consumers and producers.

Furthermore, the secretary general said that, in case prices drop to particular levels, plenty of investors may be forced to abandon various marginal projects.

Meanwhile, the crude oil production of OPEC for the month of April is on its way to reach its lowest level since October of 2011 as tension in Libya, leaks in Nigeria’s pipeline and disruptions in Iraq’s exports pull supplies lower, according to recent market surveys.

The survey showed that Saudi Arabia, the top exporter of OPEC, was still restricting its output.

The oil group is set to convene on the 31st of May in Vienna and look into its production policy for this year’s second half.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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