Adnoc crude averages $110.94 this year

Abu Dhabi: The official selling price (OSP) of Abu Dhabi crude oil grades averaged $110.94 a barrel after the completion of the first nine months of 2008, with the monthly average price being the highest in July at $135.68 a barrel and the lowest in January at $91.06 a barrel, according to the data published by the Abu Dhabi National Oil Company (Adnoc) on its website.

For January-August this year, the price of Adnoc crude grades was averaging $112.69 a barrel. The Adnoc crude grade prices are since down in line with the falling international oil prices on global recession fears.

On Friday, on the New York Mercantile Exchange, crude oil futures for November delivery settled at $71.85 a barrel, while on London's ICE Futures Exchange, futures prices for the same month dropped even lower to close at $66.28 a barrel.

The average OSP of Abu Dhabi crude grades - Murban, Upper Zakum, Lower Zakum and Umm Shaif - was down 19.64 per cent in September from the previous month at $96.90 a barrel.

International prices of oil soared to an all-time high of $147.27 a barrel on July 11. However, since then, prices have fallen sharply to levels below $80 a barrel, led by the turmoil on the US financial markets and subprime mortgage crisis, which are having repercussions globally.

The fuel consumption in the US, the world's largest oil importer has slowed down. As well, the fuel consumption in Europe and Japan has also fallen, with the latter, it is widely feared, is slipping into a recession.

According a report by global investment bank Goldman Sachs, it now expects US crude oil prices to end 2008 at around $70 a barrel, down from a previous forecast of $115 a barrel.

"However, should the financial and evolving economic crisis cut deeper into demand, the market could fall as low as $50, which we believe to be the industry's cash cost and shut in level," its analysts wrote.

The average crude price of Adnoc in August was $115.93 a barrel, while in July it touched an all-time high of $135.68 a barrel. In June, the Murban, Lower Zakum, Upper Zakum and Umm Shaif grades had an average price of $132.28.

Adnoc's prices in May averaged $124.1 per barrel, in April $107.85, in March $100.81, in February $93.83 and in January $91.06.

The OSP of Abu Dhabi crude grades in the first half this year averaged $108.32 per barrel, a whopping 73.6 per cent rise on the year and in line with the high prices prevailing at the time.

Last year, in January to June period, the price of Adnoc crude grades averaged $62.39 a barrel.

The UAE's oil export revenue is expected to cross the $100 billion mark in 2008 on the back of stronger international prices, compared to prices last year.

Abu Dhabi's production accounts for nearly 94 per cent of the UAE's crude output. The country's oil would last 92 years at current production levels, recent estimates of global energy major BP show.