May 4, 2011

Brent oil price dips under $123, amid lower OPEC oil output

Brentoil prices open today’s trading session back under $123 a barrel afterfalling over two percent on Tuesday, even though oil supply datareleased by OPEC showed that once again, OPEC oil output dipped lower.

Latest Brent Oil Price

InLondon, Brent crude oil futures for June 2011 delivery was trading at$122.39 a barrel, 07.05 GMT this morning on the ICE Futures Exchange.The Brent futures contract closed yesterday down 2.2 percent at $122.42.

OPEC Oil Output Falls Again

OPECoutput fell for a third month in April as fighting in Libya and fieldmaintenance in Angola cut supplies, despite extra oil from Saudi Arabiaand Nigeria.

Supply from all 12 members of OPEC averaged 28.42million barrels per day, down from a revised 28.48 million in March, thesurvey of oil companies, OPEC officials and analysts found.

Saudi Arabia Oil Production Cut

Topworld exporter Saudi Arabia’s output in March was 700,000 barrels perday lower than first estimated. The kingdom cut oil production in Marchdue to oversupply, Saudi Oil Minister Ali al-Naimi said on 17th April.

“Productionwas around 8.5 million bpd in April and the reason we raised output isbecause there was higher demand.” a Saudi based industry source said onSunday.

OPEC member countries oil output has fallen for threemonths since reaching 29.63 million barrels per day in January, thehighest since December 2008.

OPEC does not provide timely officialproduction figures, so the oil industry relies on supply estimates fromnews agencies, consulting firms and organizations such as the US IEA(International Energy Agency).