• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 29 mins Which producers will shut in first?
  • 11 mins The Most Annoying Person You Have Encountered During Lockdown
  • 2 hours Its going to be an oil bloodbath
  • 15 hours We are witnesses to the end of the petroleum age
  • 2 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 20 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 5 hours Wastewater Infrastructure Needs
  • 18 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 19 hours >>The falling of the Persian Gulf oil empires is near <<
  • 22 hours Natural gas price to spike when USA is out of the market
  • 23 hours As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go
Alt Text

WTI Rallies 24% In Panic Stricken Markets

WTI rallied on Thursday for…

Alt Text

Oil Jumps As Markets Panic

Oil prices rose slightly on…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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






Leave a comment

Leave a comment




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