The price of Organisation of Petroleum Exporting Countries, OPEC basket of 12 crudes stood at $102.37 falls to $103.16, according to OPEC Secretariat calculations.
The cartel did not provide any reasons for the market situation. But a source at the global market said, “The market situation does not call for panic because the market remains stable at over $100 per barrel.
He stated, “Many oil producing and exporting nations would still be in a position to generate foreign exchange for the execution of their 2014 budgets and other programmes.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador) and Iran Heavy (Islamic Republic of Iran).
They also include Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
The organisation stated in its latest market report that the world economic growth for 2013 and 2014 remains at 2.9per cent and 3.5per cent, respectively.
It stated that the 2014 forecast for the OECD is unchanged at 2.0per cent, compared to 1.3per cent in 2013.
The cartel stated, “In contrast, China’s growth for 2014 has been revised down slightly to 7.6per cent, just below estimated 2013 growth of 7.7per cent. India’s forecast remains at 5.6per cent for 2014 and 4.7per cent for 2013.
It stated that the ongoing trend of accelerating economic growth in the OECD amid a slowdown in emerging economies has been confirmed by the latest data.
The organisation stated, “World oil demand growth for 2013 was revised up by 70 tb/d to stand at 1.05 mb/d. upward revisions were seen in OECD Americas and Europe, reflecting stronger-than expected seasonal demand for 4Q13. Africa was also higher due to baseline effects. For 2014, global oil demand is seen rising by 1.14 mb/d, following an upward revision of 50 tb/d.
It stated, “Non-OPEC oil supply is expected to increase by 1.31 mb/d in 2014, following estimated growth of 1.33 mb/d in 2013. Growth is seen mainly coming from the US, Canada, and Brazil, while Norway, UK and Mexico are seen declining. In February, OPEC crude production, according to secondary sources, averaged 30.12 mb/d, up 259 tb/d from a month ago.
The cartel stated that the product markets in the Atlantic Basin received support in February from re-opened gasoline arbitrage to the US East Coast, which allowed European margins to rebound sharply.
It stated, “In the US, refining margins weakened as the decline in middle distillates and fuel oil cracks offset gains in gasoline. In Asia, refinery margins recovered further as markets temporarily tightened due to refinery disruptions and the start of seasonal maintenance.
The Organisation stated, “Dirty tanker spot freight rates declined in February by an average of 39 per cent from the previous month. The drop was mainly due to the start of the refinery maintenance season, surplus tonnage supply, improved weather conditions in the Turkish Straits, and lower tonnage demand. Clean tanker spot freight rates dropped on average by 6% in February.
It also stated, “OECD commercial oil stocks continued to fall in January after a sizeable decline in 4Q13. Crude and products showed a deficit of 19 mb and 123 mb, respectively, compared to the five-year average. In February, US total commercial oil stocks increased, but remained 32.0 mb below the fiveyear average, with crude some 8.0 mb above the seasonal norm.”