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15
RECOPEANNUALREPORT2014
OPEP, which traditionally has played a “stabilizing” role in prices, took
the decision to continue with their production quote and allow that the
international market sets its own price.
Saudi Arabia’s strategy of not cutting down its production may have three
implications. First, eliminate current and future competition, as they believe
that low prices would eliminate from the market almost 50% of producers
in the United States, which use fracking technology as a extraction process.
Saudi Arabia recently lowered prices to customers in the United States and
increased its prices for their customers in Europe and Asia. Second, aimed at
not losing their market share to other producers with low prices who might
replace them. And third, to discourage investment in infrastructure.
The continuous fall in international prices during the second semester of
the year 2014 resulted also on a significant decrease in biofuels price.
Average prices from January to December 2014 for Brent Crude, LPG
MT Belvieu (propane 70%/butane 30%), Gasoline UNL 87 and Ultra Low Sulfur
Diesel are shown in the table above. As indicated, the gasoline UNL 87 pipeline, price
reference for secondmost important product in sales in our country, had a decrease of
US $9.57/bbl. Moreover, theULSDiesel Pipeline price, reference for the largest selling
product in Costa Rica, decreased $7.13/bbl, as a result of the drop in crude oil prices.
Also, a decrease of US$7.50/bbl was noted, i.e. 7.04% in the price per barrel of Brent
and LPG decreased US$3.67/bbl.
Biofuels
Average monthly prices – 2014 US$/barrel
Comparison between the average FOB price of Brent oil, derivatives and
biofuels.January – September vs. January December 2014
Source:
International Fuel Trading Division. Platts: FOB Crude Oil Price. Brent (North Sea). Derivatives for the
referencemarket on the Gulf Coast of the United States. Information received by electronic mail.
Bi odi esel
Houston
Br azi l
Chi cago
January
92,7
104,06
133,75
February
102,03
110,69
143,03
March
140,58
117,59
149,38
April
118,12
114,85
152,17
May
98,61
103,34
155,59
June
94,29
99,76
156,2
July
93,76
102,12
151,01
August
92,77
102,53
147,78
September
79,2
101,55
134,69
October
76,31
94,02
186,27
November
96,41
88,42
126,29
December
82,2
88,69
128,59
Months
Ethanol
Di f ference
Var i ati on
(US$/bbl )
(%)
Brent
106,55
99,05
-7,5
-7,04
LPG
49,58
45,9
-3,67
-7,41
Gasolina 87 Pipeline
116,07
106,51
-9,57
-8,24
Diesel ULS Pipeline
120,99
113,86
-7,13
-5,89
Ethanol (Chicago)
94,58
91,75
-2,83
-2,99
Ethanol (Brazil)
106,28
102,3
-3,98
-3,74
Biodiesel (Chicago)
147,07
147,06
0
0
Product
Januar y-September
Januar y-
December