OPEC price rises as Saudi lower supplies offset US higher production

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The price of OPEC basket of fourteen crudes stood at $50.04 a barrel on Monday, compared with $49.94 the previous Friday, according to OPEC Secretariat calculations.

This comes as oil prices steadied on Tuesday after news of lower crude supplies from Saudi Arabia offset higher production from other large exporters including the United States.

Saudi state oil company Aramco will cut allocations to its customers worldwide in September by at least 520,000 barrels per day (bpd), an industry source familiar with the matter told Reuters on Tuesday.

The cut is in line with the kingdom’s commitments in a supply reduction pact led by the Organization of Petroleum exporting Countries designed to bolster oil prices that have been depressed for more than three years by a global glut.

But oil production remains high in many parts of the world and prices are still around half the level seen in 2011-2014.

The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (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).

Source: The Baghdad Post

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