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The international energy situation > Oil > Evolution of the sector
Evolution of the sector
Between May and October 2008, the price of a barrel fell from $140 to $40
December 2007

2007 ended with the price above 95 dollars.
We should recall that the 146th conference of OPEC ministers held at the beginning of December 2007 decided to delay any possible increase in production until at least February 2008. The combined output for OPEC countries was set at 27.25 million barrels a day from 1 November 2007. The addition of Ecuador and Angola brought the combined total to 29.65 million. Although some falls were recorded during the remainder of the year, 2007 ended with the price at more than $95 dollars a barrel, having begun the year at $51, the lowest price for 20 months.
PRICE OF CRUDE. SPOT MARKET. FOB
AVERAGE VALUES ($/barrel)
 
Crude
  • Dubai
  • Brent
  • WTI
 
ºAPI
  • 32
  • 38
  • 40
 
1982
  • 30,88
  • 32,86
  • 33,68
 
2003
  • 26,76
  • 28,83
  • 31,06
 
2004
  • 33,69
  • 38,27
  • 41,49
 
2005
  • 49,54
  • 54,52
  • 56,59
 
2006
  • 61,52
  • 65,14
  • 66,02
 
2007
  • 68,27
  • 72,39
  • 72,20
  •  
 
Jan.
  • 87,37
  • 92,00
  • 92,98
 
April
  • 103,41
  • 108,97
  • 112,63
2008
July
  • 131,27
  • 133,18
  • 133,30
 
Oct.
  • 67,42
  • 71,87
  • 76,62
 
Dec.
  • 41,56
  • 41,52
  • 44,61
Source: Energy Prices and Taxes. IEA. OECD
Opening months of 2008

During the early months of 2008, oil broke the US$100 barrier on several occasions.

At the same time, the value of the US currency plunged against the euro. The OPEC meeting held at the beginning of March left the production allocation unchanged. During this period, the world looked on as disparaging remarks were exchanged between international organisations, and commentators began to refer to a new energy scenario and, as they had during the crises of 1973 and 1979, the diversification of demand.

The rise in both oil and food prices created yet another barrier to development among the world’s poorest countries and communities.

May

By the middle of May, oil was selling at $130 a barrel
Events were developing at breakneck speed, and by the middle of May the price of oil had reached $130 a barrel. Some commentators began to talk about the possibility of the price reaching $200. OPEC gave assurances that there was no problem as regards supply. Crude went past the $140 a barrel mark in the middle of June, and the International Energy Agency (IEA) began to revise its consumption forecasts for 2008.
July

From mid-July, the markets began to accept that the large consumer markets were showing signs of real economic problems: pricing trends began to change.
At a meeting held on 10 September, OPEC agreed to cut total production by its members from 29.69 million barrels a day to 28.8. On the same day, the IEA lowered its consumption forecasts for 2008 and 2009.
October

In the middle of October, OPEC’s crude price fell to $77, similar to the price it had been a year earlier.

An extraordinary OPEC meeting was convened, and total output was fixed at 27.3 million barrels a day, but despite this, the cartel failed to halt the fall in prices. By 18 December, Texas crude was selling at under $40 a barrel for the first time since 2004, falling to $37.7 by the end of the year.

All the forecasts relating to consumption (including those made by the IEA and OPEC itself) pointed to a fall in demand over the short and medium term. The financial crisis was now a reality, and all the markets were recording a fall in demand, including China, one of the countries that had most boosted the market in recent years.

Early 2009

Despite this, the markets have been more balanced during the early months of 2009, displaying much less volatility.

The price of gas has followed a similar course. While at the beginning of July 2008 it was being quoted on the US Henry Hub spot market at $13.5/MMBtu, by 5 December the price had fallen to $6.5/MMBtu. At the end of January 2009 it stood at $4.5/MMBtu.
  • BP
    Grupo Gas Natural
Annual Report 2.008: Sedigas - The Spanish Gas Association