Oil prices rose slightly yesterday following expectations that the Organisation of Petroleum Exporting Countries, OPEC, will extend production cuts at a meeting at the end of this month.
Brent crude at the international averaged $62.06 per barrel, up 19 cents, or 0.3 per cent, from their last close, while the United States, West Texas Intermediate (WTI) crude futures stood at 55.39 dollars a barrel, six cents up from their last settlement. Traders attributed the rise to efforts from OPEC to withhold oil production, with aim geared toward making the market firm and prop up prices.
According to OPEC Secretariat calculations, “The price of OPEC basket of fourteen crudes stood at $59.79 a barrel on Wednesday, compared with $60.52 the previous day.
“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 (Islamic Republic of 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).”
OPEC had stated in its Monthly Oil Market Report for November, that its reference basket averaged $55.50/b in October, gaining $2.06 over the previous month and reaching the highest value in more than two-and-a-half years, with a year-to-date average of $50.68/b.