By Adedapo Adesanya
The Organization of the Petroleum Exporting Countries (OPEC) daily basket price of 13 crudes stood at $44.62 per barrel on Thursday.
The weighted average rose by 38 cents or 0.86 per cent compared with $44.24 per barrel published at the previous day, according to the latest OPEC Secretariat calculations.
Also known as the OPEC reference basket of crude oil, the OPEC basket, a weighted average of oil prices from different OPEC members around the world, is used as an important benchmark for crude oil prices
The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
The rise can be pegged on the back of a weaker dollar but gains were capped by concerns about rising US oil inventories, a persistent surge in new coronavirus cases, and tension between the United States and China.
The US dollar index traded in its lowest in four months against a basket of currencies was and investors quickly capitalised on a weaker dollar. Scenarios like this usually spur buying of dollar-priced commodities, one of which is crude oil, as they become cheaper for holders of other currencies.
In other OPEC related news, the cartel’s second-largest producer and key laggard, Iraq, is still undershooting its pledge as promised in the supply cut deal.
The country failed to meet its target in May and June and now as its July exports have increased. The July figures imply Iraq is still some way from fulfilling its pledges and is exporting far more than a July loading program indicated.
Iraq had told the OPEC+ alliance that it would make up for over-production in May and June through larger cuts in later months but
In June, Iraq delivered about 88 per cent of its cut, according to secondary data calculations based on OPEC data. If exports in July hold steady, adherence to the deal will have 65 per cent.
