OPEC Secretary General: Oil Prices Will Rebound
According to the report of Wall Street Journal on September 13, Abdalla Salem el-Badri, the OPEC Secretary General, recently said the oil prices would rebound before the end of this year, and therefore OPEC didn’t intend to hold an emergency meeting.
It is reported that the most widely used international oil benchmark- Brent Crude Oil has fallen below $ 100 per barrel last week. Badri believed that the seasonal factor was the main reason of falling oil prices. He said he was not very worried about this problem. He said, “To judge the market trend according to the performance in July and August is not accurate, because oil refineries
were generally under overhaul during this period and other factors might also influence it.”
Affected by seasonal factors, oil demand will usually rise in early October, when the OPEC Secretariat will again assess the market situation. Badri said, OPEC would carefully observe market conditions in early October. However, he also hinted that the oil price would rebound mechanically if it met a further decline
. He disclosed that crude oil production with higher cost would be out of the markets if the oil prices declined.
According to the data of the International Energy Agency (IEA), the breakeven price of U.S. shale oil projects normally reaches $ 80 per barrel. Badri said that the average price this year still overall remianed a healthy level. The average annual price of OPEC crude oil is still $ 104.8 per barrel, which is enough to make the majority of OPEC member states to maintain a balanced budget.