Supply Restrictions Trigger a Price Recovery

摘要

Despite several factors that are continuing to exert downward pressure on oil prices, the reduction in supply observed both among OPEC member countries and some other exporters is beginning to bear fruit. The average value of the OPEC crude basket rose above the 40/b mark on 22 January once again, reaching 40.31/b that day, which was 0.77/b up from the previous day's close of 39.54/b. The basket price had fallen to an average of 38.60/b through December, and sank to a low of 34.92/b on 26 December, shortly before OPEC's latest production cuts came into effect on 1 January last. The OPEC crude basket has the merit of reflecting the development of the physical market and of being more representative of oil prices than some crudes traded on the futures markets, especially West Texas Intermediate (WTI), whose price has undergone some wild fluctuations recently, linked to temporary developments that are specific to the American market.