OPEC crude oil price cracks $120 barrier

May 21st, 2008 - 4:02 pm ICT by admin  

Vienna, May 21 (DPA) The price for crude oil produced by the Organisation of the Petroleum Exporting Countries (OPEC) has reached a new all time high, OPEC said Wednesday. One barrel (159 litres) of OPEC-produced crude stood at $121.02 Tuesday, up $1.78 from the previous day, jumping above $120 for the first time.

Record prices were reached despite the absence of real bullish fundamentals, analysts said.

OPEC member Iraq said that owing to recent seismic surveys it would upgrade its reserves estimates to 350 billion barrels, more than what Saudi Arabia produces.

According to Vienna-based analysts JBC more news to ease supply concerns was Kuwait’s announcement of a major upgrade of its export facility, increasing capacity to 3.4 million barrels per day.

OPEC calculates an average basket price based on 13 important brands produced by cartel members. The organisation is responsible for about 40 percent of the global crude output.

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