OPEC lowers projection for 2015 production

OPEC lowers projection for 2015 production

OPEC daily basket price stood at $62.33 a barrel Tuesday, 9 December 2014

The price of OPEC basket of twelve crudes stood at 62.33 dollars a barrel on Tuesday, compared with $63.78 the previous day, according to OPEC Secretariat calculations

Reuters reported that Brent crude for January was down $1.45 at $67.62 a barrel, while US crude was down $1.16 at $64.68 a barrel.

The Organization of Petroleum Exporting Countries (OPEC), lowered its projection for 2015 production to 28.9 million barrels a day, or about 300,000 fewer than previously forecast, according to Bloomberg.

Non-OPEC supply, driven the U.S., Canada and Brazil, is estimated to expand next year by 1.36 million barrels a day to 57.31 million a day. oilbarrel

Brent crude futures fell to a five-year low of $65.29 a barrel in London on Tuesday. Futures for January delivery of light, sweet crude on the New York Mercantile Exchange are currently trading at $62.55, down about 2% from Tuesday.

Oil prices is continually being affected by the surging U.S. shale supplies and reduced estimates for global consumption. How low will it go you may ask. Prices now are below what 10 out of OPEC’s 12 members need for their annual budgets to break even, according to data compiled by Bloomberg. Contries such as Venezuela and Nigeria are in real trouble.

Bank of America reportedly stated that it sees $50 oil as a real possibility.

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