Saudi Arabia cut the price of its shipments to buyers in the United States and Asia
Oil producers are facing an oversupply by reducing selling prices and marketing agreements
Oil analysts said that the market situation calls for reductions on the prices of crude, as Saudi Arabia and Iraq along with the expansion of the new marketing agreements to stimulate demand, as did Algeria, with others expected improved growth indicators in the economies of industrial countries by 0.8 percent with support from declining production costs. Saudi Arabia-the largest oil exporter in the world reduced the monthly selling prices for shipments to buyers in the United States and Asia, a step analysts said, it appears that the Kingdom is stepping up its fight to maintain market share. This comes at a time when the futures price fell for Brent to its lowest level in five years during Asian trading yesterday, falling from 66 dollars a barrel after having suffered losses of more than 4 per cent in the previous session due to fears of increased abundance before. By 2: 05: 20 GMT Brent contracts delivered recorded January $ 65.44 a barrel, down 75 cents, or 1.13 percent from the previous close and the lowest level since October 2009.
Commenting on it says to ' economic ' analyst Amer Al-Bayati, the sharp retreats in the oil market is affected by political and economic factors, political factors are perhaps the most prominent, especially regarding the US Russian conflict, and Iranian-American on the other. The abundant supply at this stage is mainly due to low prices, especially since the United States cut its oil imports largely opposed to focus on increasing the production of oil shale but kept China and Asian markets on top of the oil consumers. Al-Bayati said that lowering prices was inevitable in light of the current situation of the oil market, noting that Iraq cut the official selling price for ore Basra light to Asia and the United States for download in January next year, but little of the raw markup destined for Europe, following Saudi Arabia, which had sharply for the official selling price for its rough to Asia and the United States.
Al-Bayati said that the budgets for the producing countries will be affected by the decline in oil prices in the next year, adding that the indicators have appeared this week in the Central Bank of Libya announced that Libyan budget revenue this year dropped to about $ 15 billion in the period up to November last year from 45 billion dollars a year ago. The need for attention to marketing and opening new horizons for the oil trade, adding current talks between Turkey and Algeria to buy Turkey petroleum products and crude oil from Algeria. Said for the ' economic ' Christian shonbor in the Austrian energy, the sharp decline in oil prices has a positive impact on Europe and the consumer countries, because it will lead to accelerated economic development and minimize the fallout from the recession caused by the high cost of production in Europe. He added that the IMF estimates that the decline in oil prices by more than 30 percent will translate to higher growth in advanced economies by 0.8 per cent.
He noted that producers no doubt suffered from this decline but many of them have made preparations for such circumstances and budgets low oil prices, noting that keeping the ' OPEC ' to the production level at 30 million barrels a day without reduction reflects their belief that the situation is not dangerous to the economies of producing countries. The decline in oil prices hurt the interest of the industrialized countries that do not produce significant amounts of oil, in Germany for example will companies and households to provide 35 billion euros next year because of low oil prices, it will also reduce the cost of production for companies and increase the purchasing power of consumers.
Dr. Philip Depeche President Euro-Mediterranean energy initiative for the ' economic ', it is difficult to say, ' OPEC ' able to control oil prices, noting that high oil prices over the past years was due to high demand, especially from Asian countries, and not only because of the intervention of ' OPEC '. The current situation of a sharp decline of prices caused by the entry of new products into the market, especially with the United States reached to modern techniques to produce oil and gas from deep rock layers that were impossible to reach in the past and is causing increasing the supply, and reduce US oil imports and is the biggest market for consumption. The share of ' OPEC ' in world oil production dropped from the previous much where she acquires 40% of production, which means that the current attempt to maintain market share of installed production lawful, natural and unpredictable.
Data issued earlier showed China's exports rose by 4.7 percent from a year earlier in November last year against expectations of an increase of 7.9 percent, while imports fell by 6.7 per cent, compared with expectations for an increase of 3.5 percent. And the country's trade surplus widened to $ 54.5 billion last month from $ 45.4 billion in October, compared with estimates of $ 43.2 billion surplus. Separately, revised data showed the Japanese economy shrank at an annual rate of 1.9 percent in the third quarter, more than the initial estimate of a decline of 1.6 per cent. On a quarterly basis the economy shrank by 0.5 percent in the three months to September last year, compared with the initial estimate of a contraction of 0.4 per cent.