Imports
In 2016, RECOPE S.A. imported 3.21
million cubic meters (20.21 million
barrels) of finished product at a CIF
price of $1,073.56 million USD (average
price per barrel: $53.4/bbl). The total
import CIF price in 2016 fell by 16.75%
in relation to the previous year, in which
the average price per barrel amounted to
$64.15 USD.
This behavior can be attributed to the
quoted price of crude oil, which - due
to a global oversupply of black gold -
fell to $26 USD in January 2016; this in
turn had an effect on the cost of refined
petroleum products.
The price of oil broke the $50 barrier
for the first time in months between the
months of October and December. The
factors that individually and collectively
push the price upward are: the rise and
fall of the dollar; rumors of a decline in
crude oil reserves stockpiled in the U.S.
oil storage facility in Cushing, Oklahoma
(which serves as a pricing reference for
West Texas Intermediate oil); the threat
of attack by militant forces in Nigeria,
namely the High Command of the Niger
Delta Avengers (NDA); & Saudi Arabia’s
decision to raise the price of crude oil
exports to the United States and Asia
(which could be interpreted as a sign of
optimism).
Moreover, with the purpose of stopping
the decline in the price of oil, member
and non-member countries of the
Organization of the Petroleum Exporting
Countries (OPEC) agreed to halt
production during the International
Energy Forum held in Algeria. The group
agreed to curtail crude oil production by
1.2 million barrels per day (equivalent to
1.5% of global oil production), starting
in 2017, in light of the fact that OPEC
produces one-third of the world’s oil.
In addition to the decline in production
announced by OPEC, Russia, Oman and
Mexico also pledged to cut production
by 0.6 million barrels per day.
This decision was ratified on December
9th, 2016. Similarly, multiple OPEC non-
member countries, among them Russia,
pledged to uphold the oil production
curtailment policy; immediately driving
the price of oil upward.
RECOPE and the International Market
2016 average price per barrel
$53.4
/bbl
OPEC agreed to curtail crude oil
production by
1.2
million
barrels per day, starting in 2017
10
2016 ANNUAL REPORT
