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Page added on July 5, 2010
OPEC surplus keeps price of crude down
Iran’s OPEC governor Mohammad Ali Khatibi said the organization had surplus capacity of 4-6 million barrels of oil per day, which was keeping the price of crude down.
Right now, because of the economic crisis, OPEC is facing a 4-6 million barrel surplus capacity,” Khatibi said, according to the Iranian oil ministry website SHANA.
“This will be having a psychological effect on the oil price.”
Oil fell for a fifth straight day on Friday amid investor anxiety about the global economic recovery.
Khatibi also said likely restrictions on future exploration following BP’s massive deep-sea oil leak in the Gulf of Mexico would increase costs for producers.
“Because of the problems happening in the Gulf of Mexico, it is predicted that the production cost of crude oil in deep waters will increase,” he was quoted as saying by ISNA news agency.
“It is unlikely from now on that they will permit exploration in sensitive areas.”
One Comment on "OPEC surplus keeps price of crude down"
KenZ300 on Tue, 6th Jul 2010 1:14 am
“It is unlikely from now on that they will permit exploration in sensitive areas.”
The cost of oil will be going up for everyone.
If we add in the cost of the Gulf clean up and it’s cost to the economies of the Gulf the true cost of oil is much higher than we have been paying.
Oil is cheap unless you have to pay for the damage you do extracting it.