OPEC Basket Rises to $45.49 Ahead of Monitoring Committee Meeting

Wednesday, August 19,2020

The price of the basket of 13 crudes belonging to the Organisation of the Petroleum Exporting Countries (OPEC) rose ahead of the August Joint Ministerial Monitoring Committee (JMMC), climbing to $45.49 per barrel on Tuesday.

Compared with $44.94 on record at the previous day, the weighted average rose 1.22 per cent according to OPEC Secretariat calculations released on Wednesday.

The OPEC Reference Basket of Crudes is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

With the meeting scheduled for today, Russian Energy Minister, Mr Alexander Novak will join the OPEC+ ministers’ virtual meeting despite testing positive for the novel coronavirus while on a work trip to Russia’s far east, the country said.

“The minister feels good. He has no symptoms,” the ministry spokeswoman, Ms Olga Golant said in a statement confirming that Mr Novak would take part in the 21st meeting of the monitoring group.

OPEC+ producers are set to review adherence to their production pact on oil output cuts at the meeting against the backdrop of a slow recovery in demand.

Compliance with OPEC+ oil output cuts was 95-97 per cent in July, according to OPEC+ sources earlier this week.

Mr Novak is in Russia’s far east as part of a government delegation headed by Prime Minister Mikhail Mishustin, who had contracted the novel coronavirus in late April.

Mr Novak will continue working remotely, for the time being, the ministry’s spokeswoman said in the statement.

Last month the JMMC recommended that the cut be eased from August 1 to about 7.7 million barrels per day from a reduction of 9.7 million barrels daily previously, in line with an earlier OPEC+ agreement. That change was implemented this month and won’t be changed this month.

The committee will urge lagging members to make their contributions to help drive compliance

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