• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 mins Is Eating Meat Worse Than Burning Oil?
  • 30 mins Diplomatic immunity
  • 6 hours Canada Election Deadlock?
  • 7 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 18 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 1 day Here's your favourite girl, Tom!
  • 1 day Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 6 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours Devaluing the Yuan
  • 1 day IMO 2020:
  • 17 hours Nigeria Demands $62B from Oil Majors
  • 2 days Deepwater GOM Project Claims Industry First
  • 15 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
Alt Text

The Cheapest Oil Ever Sold

If history tells us anything,…

Alt Text

Oil Slides On Trade War Anxiety

Oil prices dropped on Tuesday…

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
Download on the App Store Get it on Google Play