COMMODITIES: OPEC World Oil Outlook For 2013 - Oil Prices Assumed To Remain Stable In Long Run

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OPEC's substantial World Oil Outlook 2013 was released a short time ago.

In the Executive Summary it says oil prices are assumed to remain stable in the long run. It says the rising cost of supplying the marginal barrel has been, and remains, one of the major factors in making assumptions for oil prices over the medium and long term. Upstream capital costs more than doubled over the 2004 to 2008 period. Downward cost pressures stemming from the global recession were only temporary and since the beginning of 2010 upstream capital costs have been rising again, albeit at a slow pace. OPEC says the oil price assumption of the WOO 2013 Reference Case reflects these cost developments and is similar to the previous year's assumption. It notes the nominal OPEC Reference Basket ( ORB ) price remains at an average of $110 a barrel over the period to 2020 and then rises, reaching a nominal value of $160 per barrel by 2035. In real terms, the ORB is $100 a barrel by that year. This represents a slight upward revision from the WOO 2012.



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This article appears in: Investing , Commodities

Referenced Stocks: ORB

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