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CHAPTER ONE
Developments in Global Markets
3. Price Trends
3-1 Crude Oil Prices
In 2012, global oil market has witnessed a relative stability, as
monthly average price of the OPEC basket levels fluctuated within a
band between $108/b and $118/b for most of the months of 2012 .
The annual rate of OPEC basket price was up by $2/b, or 2%, as the
spot price averaged $109.5/b, compared with $107.5 in 2011.
The first half of the year characterized by relatively high degree
of price volatility as monthly price of OPEC basket of crudes was
moving within the range of $94/b to $123/b compared with the second
half were prices witnessed a relative stability as monthly OPEC basket
price was fluctuating within the range of $100/b to $111/b.
On quarterly basis, the average OPEC basket price reached
$117.4/b, in the first quarter representing an increase of $9.5/b or
9%, compared with the fourth quarter of previous year, declining
noticeably in the second quarter by 9%, compared with the first
quarter to $106.8/b. In the third quarter it remained close to the
second quarter level of $106.6/b and increased by $0.8/b or 0.8% to
$107.3/b in the fourth quarter. Monthly average price of the OPEC
basket remained close to or above the $100/b in the course of 2012,
except in month of June when it reached a level of $94/b.
It is worth mentioning that the monthly average of OPEC basket
price began to rise until they reached the upper limit of $123/b during
the month of March. Then it began to decline until it reached the
minimum level of $94/b during the month of June. After that, prices
rose until the month of September where they fell a little bit and
settled at the level of $107/b during the last two months of the year.
