VIENNA, May 16 (Xinhua) -- The weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) continued to drop last week, falling to 109.41 U.S. dollars per barrel, the Vienna-based cartel said Monday.
OPEC oil price has declined for two consecutive weeks. Over the last two weeks, it dropped by 0.87 percent, or 10.38 U.S. dollars compared with the last week of April this year.
In the early last week, OPEC oil price rebounded slightly due to the depreciation of the U.S. dollar as well as the large purchase by the market speculators as the evident decline in oil price at the first week of this month.
It was followed by a fleeting period of calm in the crude oil market, since the investors' confidence in the reliability of crude oil supply restored and which suppressed the crude oil price to a certain extent.
However, along with the U.S. crude oil reserves increase to the highest level of two years, and the International Energy Agency (IEA) decreased the global oil demand forecast this year for the first time, coupled with such factor as appreciation of the U.S. dollar, the international oil price dropped once again.
Overall, the OPEC oil price last week showed an intense fluctuation with the daily maximum amplitude of more than three U.S. dollars, which indicates that the current international crude oil market remains relatively unstable.
The oil price is suppressed by the negative economic figures, but also supported by the sustaining turmoil in the Middle East, and the concerns on oil supply crisis.
As the geopolitical situation of the Middle East remains no big change recently, the U.S. economic figures as well as its inventory changes may become the major factors affecting the international crude oil market for a period of time in future.
Since April of this year, as the biggest oil consumer, the U.S. economic situation has been fluctuating, which also makes its economic perspective uncertain. Additionally, the changes in the dollar also greatly affect oil prices.
Moreover, the solution prospects for the debt problems in euro zone and its influence on the U.S. dollar will also impact the oil price to some certain.
All the above factors will affect the international oil price greatly in the next period of time. Particularly, how to resolve the debt problems of the Greek will cause great concern in the market.
Gerald Grohmann, president of the Schoeller-Bleckmann Oilfield Equipment (SBO), recently predicted in Vienna that the international oil prices may decline, which would be a "healthy" trend. Because the early rise in oil prices was more speculative.
He also believes that based on market demand, at present, "80-90 dollars per barrel is a reasonable price."
