Oil prices continued their downward trend, registering $31.8 per barrel Tuesday compared to an average of $33.3 early this week, due to the high supply of crude oil in the international market from exporting countries.
Prominent officials in the Egyptian General Petroleum Corporation (EGPC) told Daily News Egypt that Egypt is registering good numbers in the subsidies’ bill as a result of the continuing decline in Brent’s prices. Egypt will work on increasing its crude oil imports to refine them in Egyptian refineries and offer the products in the local market.
All the Gulf country’s stock markets witnessed a sharp decline Tuesday affected by the decrease in the price of oil. The stock markets that suffered this decline include the markets of Saudi Arabia, Qatar, Abu Dhabi, and Kuwait achieving an average decline of approximately 3%.
“About 3m crude oil barrels are being imported from Kuwait monthly. We negotiated with the Libyans over importing oil but did not reach an agreement yet,” the official said and Egypt seeks to increase its crude oil production in 2016.
EGPC former deputy chairman Medhat Youssef said Brent’s prices reached its lowest in 12 years as a result of the high supply, low demand, and Iran’s strong presence in the oil market after lifting the embargo on it.
Youssef said the political tension in the region is the factor controlling Brent’s price under the competition between the exporting companies over increasing production, which is perceived as a critical factor in controlling the international energy market.
Youssef expected Brent’s price to decline below $30 by the end of January if producing countries do not decrease their produced amounts. The price is expected to increase again in the summer, in which the consumption rates increase; however, it will reach a maximum of $40.
Riyadh Centre for Studies and Consultancy Information issued a report showing that Arab countries were harmed the least by Brent’s price decrease. The cost production of the oil barrel in the Arab countries is $7-23.8, compared to $27.8-52.5 in the major foreign countries that produce oil.