VIENNA, Dec. 29 (Chinese media) -- After only one-week slight rebound, the weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) again dived below 40 U.S. dollars a barrel to 34.92 U.S. dollars last week, the Vienna-based cartel said on Monday.
Statistics by the OPEC Secretariat showed the weekly prices were 5.36 dollars lower than last week, making a daily decline of almost 1.8 dollars within the only three trading days of last week, hitting a historic low since the second week of December, 2004.
OPEC's decision on Dec. 17 of a daily crude oil output cut of 2.2 million barrels failed to arrest oil slide. OPEC officials believed that a bigger output cut is necessary.
It is generally believed that the weak demand for crude oil due to a weakening world economy and the pessimistic prospect of the economic growth as well as reduced international oil speculation push down the oil prices.
In addition, international exchange rate fluctuations and relatively eased geopolitical tensions have also attributed to falling prices. But more economic experts began to consider other hidden factors behind the unconstrained fluctuation of oil prices.
Recently, Palestine and Israel have exchanged fire again, aggravating the geopolitical tension in the Middle East. The prices of U.S. WTI crude oil and Britain Brent crude oil have both shown different rises in the international market, which, according to market analysts, may be in connection with the sharpening Palestine-Israel conflict.
However, some experts noted that such conflicts have been common in the past," and may have "only limited effect" in pushing down oil prices.
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