The price of Organisation of Petroleum Exporting Countries, OPEC basket of 13 crudes stood at $38.46 a barrelon Wednesday, compared with $38.27 the previous day, according to OPEC Secretariat calculations.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Meanwhile, the twelfth meeting of the energy dialogue between the European Union (EU) and OPEC has ended in Vienna, Austria.
OPEC confirmed in a statement that Miguel Arias CaÃ±ete, Commissioner for Climate Action & Energy at the European Commission, headed the EU delegation.
It disclosed that Abdalla Salem El-Badri, Acting Secretary General of OPEC, led the OPEC delegation.
The cartel said both parties emphasised that the Energy Dialogue has come a long way since its establishment in 2005 and is more important than ever in the current context of energy markets.
The organisation supported by various roundtables, workshops and studies, the Energy Dialogue has resulted in productive joint activities on a wide range of oil and energy related issues and has brought significant benefits to both sides.
It maintained that the parties noted that since the last Energy Dialogue meeting in June 2014, there has been a growing challenge in energy markets, particularly for oil. Oil prices have fallen by more than 70per cent, many investments have been deferred or cancelled, manpower has been laid off, and the market has been searching for a supply-demand balance.
The organisation maintained that looking ahead, both the EU and OPEC noted with concern that the current price environment has considerably reduced investments.
It said that such a massive fall in investment could in time lead to a supply shortfall and the risk of a sharp oil price rebound, as has been witnessed in the past.
The cartel said that although producers and consumers might have different views on what is an adequate oil price level, there was broad agreement that excessive oil price volatility and/or sharp price rises would be harmful for the economies of both the producing and consuming countries.
It noted that an affordable and stable oil price, alongside a balanced and stable market, is a prerequisite for economic growth for both producers and consumers.
The organisation observed that both the EU and OPEC recognised that through the Energy Dialogue and through initiatives in other global fora and organisations, cooperation should be enhanced, as should understanding of the behaviour of energy and oil markets, something which is important to helping achieve future oil market stability.
It stated that both sides welcomed the adoption in December 2015 of the â€˜Paris Agreementâ€™ to combat climate change.
The organization said that it presented an assessment of short-term oil market prospects.
It emphasised that lower crude oil prices mainly reflect the ongoing excess crude oil supply over global demand.
The cartel said that the positive impacts of low oil prices on oil demand in major growth regions remain intact in both the OECD and non-OECD regions.
It observed that expected oil demand growth in 2016 is in line with the average seen over the last three years.
â€œOn the supply side, lower oil prices have reversed the strong growth trend in non-OPEC supply into an expected contraction in 2016. It was noted however, that over the previous three years, non-OPEC supply has increased significantly while on average there was no growth in OPEC crude supply. OPEC also provided an overview of the long-term oil market outlook.â€œIt highlighted that energy demand will increase by almost 50per cent in the period up to 2040, with oil remaining the fuel with the largest share over the next 20 years. Â Oil demand reaches almost 110 mb/d by 2040, with developing countries accounting for most of the growth. On the supply side, total non-OPEC supply is expected to increase in the next decade, but declines towards the end of the projection period.
â€œOPEC crude supply is anticipated to increase steadily which underscores once again the need for future investments in the industry. However, it was stressed that the outlook is clouded with uncertainties stemming, in particular, from economic growth and non-OPEC supply prospects.â€