OPEC basket price rises to 117.90 dollars per barrel

OPEC basket price rises to 117.90 dollars per barrel

16/04/2011

LONDON (Reuters)
OPEC said yesterday that the price of its basket of crudes rose to 117.90 dollars per barrel on Thursday from 116.70 dollars the previous day.

The OPEC basket includes 12 types of crude oil is a mixture deserts of Algeria, Girassol Angola and Iran Heavy, Basra Light Iraqi crude export Kuwaiti Sidr Libya and Bonny Light Nigerian crude maritime country and Arab Light Saudi Murban Emirates and Miri Venezuelan Orient from Ecuador.

So experts expect oil prices to more than $ 150 a barrel, before pushing the world to slip into recession, leaving room for the producing countries to continue to make oil revenues without undermining the demand for fuel.
He said representatives of the consuming countries that prices have risen enough to impact negatively on the consumption of fuel, but the International Energy Agency and OPEC had left their expectations for oil demand growth unchanged in two reports this week.
Some analysts believe that the general rule that is causing the rise of a recession and major implications on the demand for fuel is to reach 100 percent annually, which means the price exceeded the record level in 2008 of $ 147.27 for U.S. crude.
Said Richard Batty of Standard Life Company Investments, "The danger is that if prices continue to rise, any slowdown in growth will be more severe and will increase the likelihood of recession. This can happen after oil prices rose 100 percent."
So far, less than half of the increase this percentage.

Register and Brent, who leads the current rise the highest level in two and a half above $ 127 a barrel, up 49 percent from a year earlier and about 40 percent from its level at the end of 2010.

And other standards used by Patty and other economists that the rise all by ten dollars per barrel adds - if continued - and one percent to inflation and devoured 0.5 percent of gross domestic product.
While many said it was difficult to determine the level of risk to be precise, but many also agreed that there is room for further rise before the recession.

Even the International Monetary Fund, who noted that oil prices pose a threat, said he saw no risk of recession so far and the IMF said in a report published on Monday, "the size of the actual oil supply shock compared with historical levels until the middle now."
"Despite these gains (in prices) conjures up the specter of stagflation, which happened in the seventies .. unlikely to go out on the recovery track.


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