Yemen increases crude oil prices

Last week, Yemeni crude oil reached the highest price since Yemen started exporting crude oil in 1981.  Crude oil price in Masila, Hadhramout rose to $77.49 per barrel and Marib’s oil price per barrel rose to $79.24, said Khalid Bahah, Minister of Oil and Minerals. This increase is due to the stopping of oil production in Nigeria and the low supply of OPEC which causes fears of an international oil supply shortage, Bahah said. Marib’s crude oil price is higher than Masila’s price because it is lighter than Masila crude oil.

The lighter crude oil, the higher prices, said Abdulmalik al-Amah, Deputy Minister of Oil and Minerals. “Yemen will benefit from the increased oil prices and will increase the production of Yemeni oil which has been in decline lately. This increase will also increase the public budget of Yemen,” said Professor Taha al-Fossayal of Sana’a University. In a meeting on Sunday, the Oil and Development Committee in Parliament discussed new trends of oil sharing production agreements, especially in the gas sector. Deputy Minister of Oil and Minerals Abdul-Malik al-Amah said that the meeting aimed to amend and improve conditions of contracts in the oil and gas sector. 

He said that the new trends would encourage foreign companies to invest in Yemen’s gas sector.  According to the trends, the production companies have the right to use gas after getting previous permissions from the oil ministry in fields of re-injecting gas in the depth of the earth or use it as fuel for their electrical generators, he said.

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