OPEC reported today that the price of its basket of crude oil fell by 13 percent in June to $93.98 per barrel, sharpest monthly price decline in more than three years. Iran’s Heavy was sold at $93 per barrel, compared to $107 in May.
Also in June, Iraq surpassed Iran in oil production for the first time ever, producing 2.984 million bpd. The Iranian production fell under 3 million bpd mark for the first time, registering at 2.963 million bpd in the month of June.
Meanwhile, the International Energy Agency (IEA) forecasts oil demand growth of 1 million bpd for 2013, as compared to 0.8 million bpd for the current year.
PVM Oil Associates forecasts oil prices to fall to $80 per barrel or lower, in the absence of any military confrontation with Iran.