OPEC oil price slips further to $25.89
The oil price used by OPEC to help determine its production policy fell Thursday to a seven-month low of $25.89 a barrel, the organization said.
The price was well within the $22-$28 target range of the Organization of Petroleum Exporting Countries (OPEC).
The price, based on an average of seven crudes, had fallen Wednesday below $28 for the first time in four months, according to figures provided by the OPEC secretariat in Vienna.
The 11-member grouping has increased production four times in the last year in a bid to ease crude prices which soared to 10-year highs above $35 in recent months.
The price of oil sunk to four-month lows in recent days amid confidence notably that Iraq could soon resume exports, leaving the market with copious supplies of crude.
Under a price-band mechanism agreed in March, OPEC pledged to increase production by 500,000 barrels per day if the basket price remained above $28 for 20 consecutive days.
The mechanism was triggered in October, but OPEC ministers also decided at least once not to trigger the mechanism although the conditions for its implementation had been fulfilled.
The OPEC basket price has been above $28 since May, apart from one dip in early August, according to OPEC figures.
The next OPEC ministerial meeting is scheduled for January 17 in Vienna.—AFP.
©--Agence France Presse.