Oil prices drop below 30$ in the OPEC

The OPEC, (Organisation of Petroleum Exporting Countries) has published a notice in its website, indicating that the barrel price for 13 kinds of crude oil constituting its reference basket has dropped to 29.71 $.

OPEC

The OPEC supplies almost 40% of the world’s crude oil, and it is the first time since 2004 that oil prices have dropped below 30 $. The OPEC reference basket is made up of oil from countries including Nigeria, (leading African economy), Angola (third leading African economy), and Algeria. The economy of these three countries is strongly affected by the fall in oil prices since it does not have large foreign exchange reserves like Saudi Arabia (627 billion dollars) which does not wish to limit its production.

The OPEC has already lost up to 500 billion $ potential revenue. As for the American production, it dropped by 4.1%. In as much as the situation is harmful for most activities relating to oil, Ovamba remains a sure partner for its clients in times of crisis.

Sources: http://www.agenceecofin.com/gestion-publique/0701-34933-le-baril-de-petrole-des-pays-de-lopep-descend-sous-la-barre-des-30-pour-une-premiere-depuis-2004