OPEC Reference Basket
From Wikipedia, the free encyclopedia
The OPEC Reference Basket (ORB), also referred to as the OPEC Basket is a weighted average of prices for petroleum blends produced by OPEC countries. It is used as an important benchmark for crude oil prices.
The Reference Basket currently consists of a weighted average of the following blends of oil:
- Saharan Blend (from Algeria)
- Minas (from Indonesia)
- Iran Heavy (from Islamic Republic of Iran)
- Basra Light (from Iraq)
- Kuwait Export (from Kuwait)
- Es Sider (from Libya)
- Bonny Light (from Nigeria)
- Qatar Marine (from Qatar)
- Arab Light (from Saudi Arabia)
- Murban (from UAE)
- BCF 17 (from Venezuela)
Prior to June 15, 2005, the OPEC Basket consisted of the following:
- Arab Light (from Saudi Arabia)
- Bonny Light (from Nigeria)
- Fateh (from Dubai)
- Isthmus (from Mexico, a non-OPEC country)
- Minas (from Indonesia)
- Saharan Blend (from Algeria)
- Tia Juana Light (from Venezuela)
However, on June 15, 2005 the OPEC basket was changed to reflect the characteristics of the oil produced by OPEC members.
OPEC attempts to keep the price of the Opec Basket between upper and lower limits, by increasing and decreasing production. This makes the measure important for market analysts. The OPEC Basket, including a mix of light and heavy crudes, is heavier than both Brent crude oil, and West Texas Intermediate crude oil.
