- ZERA increases petrol price from $1.58 to $1.59 per litre in June
- Diesel price reduced from $1.66 to $1.61 per litre
- Global Brent crude oil futures drop to 4-month low below $78 per barrel
Harare- Zimbabwe Energy Regulatory Authority (ZERA)has increased the fuel prices for the month of June, up from May prices for petrol in US dollar terms.
This is despite global brent crude futures held at four-month low below US$78 per barrel since May and after sliding for five straight sessions in June weighed down by signs of rising global supplies that coincided with an uncertain demand outlook.
Brent oil is primarily used for the production of gasoline, diesel fuel, heating oil, and other refined petroleum products.
ZERA spiked petrol prices from US$1.58 per litre to US$1.59 per litre in June from US$1.69 in April.
However, diesel prices went down from US$1.66 in May down to US$1.61 in June from US$1.68 in April.
United States, Russia, Saudi Arabia and Canada remained the top 4 oil producing nations in 2023.
In addition to these individual country producers, the Organization of Oil Producing Countries, or OPEC, remains a powerful cartel of oil producers worldwide that can influence the global market price.
For instance, in April 2023, OPEC surprised markets by announcing output cuts totalling around 3.66 million b/d, or 3.7% of global demand.3 This sent the price of oil up, skyrocketing 7%.
OPEC members collectively produce a significant portion of the world's crude oil, accounting for around 40% of global oil production.
OPEC countries possess the majority of the world's proven oil reserves, estimated at around 79% of the total.
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).
Ecuador suspended its membership in December 1992, rejoined OPEC in October 2007, but decided to withdraw its membership of OPEC effective 1 January 2020. Indonesia suspended its membership in January 2009, reactivated it again in January 2016, but decided to suspend its membership once more at the 171st Meeting of the OPEC Conference on 30 November 2016.
Gabon terminated its membership in January 1995. However, it rejoined the Organization in July 2016. Qatar terminated its membership on 1 January 2019. Angola withdrew its membership effective 1 January 2024.
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