The new OPEC Reference Basket of Crudes recorded over the weekend is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
The price of OPEC basket of 12 crudes has consistently been on the decline in the past few weeks, due mainly to forces of demand and supply. The reference price had crashed from over $110 recorded in the third quarter to $109.11 a barrel last month.
Since then, available data showed that it has continued to fall. Traders and analysts are still divided on the ability of the volatile market to sustain the present state till 2012 and beyond.
Some said many developments, including the return of Libya to commercial oil production and export would drag down prices. But, others are optimistic that stakeholders, especially the Organisation of Petroleum Exporting Countries would initiate actions that would restore stability and relatively high prices in the market.
OPEC Secretary-General Abdalla el-Badri said on Tuesday that he did not see oil prices falling below $100/ barrel for the rest of 2011 but warned that oil price stability could not be achieved if all members opened their taps without a formal output agreement, Iran’s Mehr news agency reported.
Badri also denied rifts within the 12-member group following OPEC’s June meeting, when ministers failed to agree on a Saudi-led proposal to raise output, and he predicted the group would reach a consensus ahead of its December 14 meeting in Vienna.