OPEC daily basket price Thursday, 27 November 2014
The price of OPEC basket of twelve crudes stood at 70.80 dollars a barrel on Thursday, compared with $73.70 the previous day, according to OPEC Secretariat calculations.
OPEC decided Thursday to keep its production target at 30 million barrels a day, despite an oversupply of crude and plunging prices.
The US Energy Information Service puts the average cost of extraction in the Middle East at a $20, while a recent estimate by Maria van der Hoeven, executive director of the International Energy Agency, said that 18% of crude oil produced in America had a break even price of over $60. What would be the ultimate effect on American shale fields?.
Nigeria, has been forced to devalue its Naira currency by eight per cent this week after the central bank admitted dwindling reserves were making it hard to defend it. According to Reuters, in dollar terms, the devaluation knocked $40 billion off the value of Nigeria’s economy.
In Equatorial Guinea, Chad, Sudan and South Sudan, the effects are being felt as frontier exploration projects contemplate shrinking margins.