• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 17 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 2 hours How many drilling sites are left in the Permian?
  • 17 hours "Undeniable" Shale Slowdown?
  • 1 day China To Promote Using Wind Energy To Power Heating
  • 18 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 20 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 1 day Gas Flaring
  • 26 mins Case against Trans Mountain Begins
  • 1 day Climate Change Protests
  • 16 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 9 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 8 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 2 days Japan’s Deflation Mindset Could Be Contagious
  • 1 day Tax Credits for Energy Storage

Breaking News:

Guaido Takes Strides To Topple Maduro

Alt Text

Oil Could Fall To $40 If OPEC Abandons Its Deal

Russia has announced that the…

Alt Text

Bullish Hedge Funds Send Oil Soaring

Strong institutional interest in oil…

Alt Text

Oil Prices Spike On Libyan Violence

General Haftar has launched a…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

OPEC Oil Basket Falls Below WTI

The price of OPEC’s oil basket, which is made out of 14 different blends, fell to US$42.58 a barrel yesterday, below the closing price of West Texas Intermediate for the same day, which was US$42.78 a barrel. The Thursday closing price for the OPEC basket was a decline from the US$43.14 at which it settled on Wednesday.

Today, however, WTI and Brent, the international benchmark, inched up on the second consecutive weekly U.S. inventory draw, as reported by the Energy Information Administration and on signals from OPEC that its members are sticking to their production cut quotas, recently extended.

According to the monitoring committee set up by the cartel to track compliance, its rate reached 106 percent last month, which lacks any real significance in light of the fact that overall, OPEC production in that month increased—for the first time this year—on the back of ramp-ups in Libya and Nigeria. The May output was 336,000 bpd higher than the figure for April, with the total at 32.14 million bpd.

None of the latest production figures for OPEC or the U.S. bode well for those with expectations of higher prices. In fact, as one analyst from Oanda told MarketWatch, “Brent and WTI may be higher for a second day but as it is, there’s little reason to believe this is anything more than a dead cat bounce and that next week may be another painful one.” Related: What Does Bin Salman’s Rise Mean For Oil?

Craig Erlam, senior market analyst at the online trading provider, added that “Traders are clearly unconvinced by the cuts that are intended to bring inventories down to their five year average, particularly against the backdrop of rising output from the U.S., Libya and Nigeria. A clear break below $44.50 in Brent and $42 in WTI could trigger further downside for oil, with $40 being the next big test.”

Earlier this week, Iran’s Oil Minister Bijan Zanganeh suggested that OPEC may be considering deeper cuts, which is what traders and investors had expected along with the deal extension. No other members of the cartel have confirmed the discussion yet.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News