A recent report revealed that the price of a barrel of Algerian oil declined by about 21% during the first quarter of this year (2023), affected by fears of a global economic recession that may affect demand.
A report by the Organization of Arab Petroleum Exporting Countries (OAPEC) on the global oil situation in the first quarter of 2023, of which the specialized energy platform obtained a copy, indicated that crude oil prices witnessed a decline during the first quarter of 2023, which is their third quarterly decline in a row.
The report attributed the decline in global oil prices, including the price of a barrel of Algerian oil, to the rise in US oil stocks, amid the decline in refinery demand during January and February, and the increase in sales of contracts by investors, amid remarkable fluctuations in the futures markets. during the first half of March.
This came with weak buying in the spot market and increased availability of supplies of crude oil, especially in the Atlantic Basin, coinciding with strikes by workers in French refineries, which caused a decline in demand for crude oil.
Algeria produces “Sahara Blend” or “Sahara Blend”, which is the third most expensive crude oil in the world during the first quarter of this year, according to data seen by the specialized energy platform.
Algerian oil price
The average price of a barrel of Algerian oil decreased in the first quarter of 2023 by $8.1 per barrel, or about 8.1%, compared to the previous quarter, to reach about $82.7 per barrel, which is a decline of $20.9 per barrel, or about 20.9% compared to the previous quarter. corresponding quarter of 2022.
The OAPEC report indicated that the rate of decline in the price of a barrel of Algerian oil is the largest in the OPEC basket, compared to similar raw materials, followed by Libyan Sidra crude, which declined by 20.8%, from $100.7 a barrel in the first quarter of 2022 to $80 a barrel in the first quarter of this year. .
And in the third place among the largest declines, Iraqi Basra crude came with a decline of 19.9%, as it recorded in the first quarter of this year 77.2 dollars per barrel, compared to 97.1 dollars per barrel in the same quarter of last year.
Saudi Arabian Light crude also declined by 15.1% during the first quarter of 2023 on an annual basis, as it recorded $82.5 per barrel, compared to $97.7 per barrel during the same period of the previous year.
UAE Murban crude decreased by 15.4%, from $97.3 a barrel in the first quarter of 2022 to 81.8 during the first quarter of 2023, and by a similar rate, Kuwaiti export crude declined from $97.8 a barrel in the first quarter of 2023, to $82 in the first quarter of this year, by a percentage. a decrease of 15.8%.
Despite the decline, the price of a barrel of Algerian oil is the highest in the list of the OPEC basket, in addition to that it occupies an advanced position in the list of the most expensive oils in the world, after Qatari marine crude, which recorded $81.3 a barrel, a decline of 16.3% on an annual basis, compared to 97.7%. dollars per barrel in the first quarter of 2022, and Brent crude, which declined by 19.9% in the first quarter of 2023, at an average of $81.2, compared to $101.1 during the same period of 2022.
Advantages of Algerian oil
The Algerian “Desert Blend” crude is one of the purest and best oils in the world, which is in increasing demand by oil refineries around the world, due to its lightness and characteristics that make it easier to deal with, and better in terms of final productivity of refined derivatives.
The value of the Algerian oil barrel price is calculated by measuring several factors, most notably the quality of the crude produced by the North African country, in addition to the prices in the OPEC basket and the measurement of standard crude prices in the United States.
The desert mix consists of several ores, produced from a number of oil fields in southern Algeria. It also contains low amounts of sulfur, which makes it in great demand, as its derivatives include gasoline, jet fuel, and kerosene.
Factors that supported oil prices
The OAPEC report reviewed a number of factors that limited the decline in oil prices, including the price of a barrel of Algerian oil during the first quarter of 2023, as follows:
- The outlook for oil demand in China has improved on the back of the lifting of coronavirus restrictions.
- The Chinese Ministry of Commerce issued a second batch of crude oil refinery import quotas in 2023.
- Refining profit margins increased in all major centers during the month of January, especially in Europe and the US Gulf Coast.
- Expectations of a decrease in Russian oil supplies in the near term.
- Temporary cessation of some crude oil exports from the Turkish port of Ceyhan.
The report said that the average spot prices of the OPEC basket of crudes decreased in the first quarter of 2023 by $7 a barrel, or the equivalent of about 8%, compared to the previous quarter, to reach about $80.7 a barrel, which is a decline of $16.9 a barrel, which is equivalent to About 17.3% compared to the same quarter of 2022.
He pointed out that the first quarter of 2023 witnessed developments in the pattern of price differences, represented in the divergence of the differences between the average prices of light oils with low sulfur content, and oils with medium sulfur content.
OAPEC attributed the developments in the price difference scene to a large extent to the decrease in the average prices of the main crude oils in the world to varying degrees during the first quarter of 2023, compared to the fourth quarter of 2022, as the average price of Brent crude decreased by about $ 7 a barrel compared to the previous quarter, to reach 81.2 dollars per barrel, and the average price of West Texas crude fell by about 6.5 dollars per barrel, to reach about 76.1 dollars per barrel.
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