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5 May 2015
Speculation played important role in Oil price decline – OPEC
FXStreet (Mumbai) - According to Organization of Petroleum Exporting Countries (OPEC), speculation played an important role in the 60% drop in oil price witnessed last year.
A rise in supply from outside the Organization of Petroleum Exporting Countries at a time when demand for oil was weak was the main reason for the drop, OPEC said in its monthly bulletin on Monday.
“There was one other important factor that contributed to the downturn, especially as the price decline gained momentum,” OPEC said. “That was speculation.”
The OPEC had left its production target unchanged at a November meeting. The next meeting is scheduled on June 5 in Vienna to discuss the market and output targets.
A rise in supply from outside the Organization of Petroleum Exporting Countries at a time when demand for oil was weak was the main reason for the drop, OPEC said in its monthly bulletin on Monday.
“There was one other important factor that contributed to the downturn, especially as the price decline gained momentum,” OPEC said. “That was speculation.”
The OPEC had left its production target unchanged at a November meeting. The next meeting is scheduled on June 5 in Vienna to discuss the market and output targets.