OPEC denies claim new Basket price formula is in operation

No 6/2004
Vienna, Austria
21 Apr 2004

Our attention has been drawn to a news story carried by Reuters on Tuesday, April 20, claiming that OPEC has “quietly introduced a new formula for assessing its reference crude price that takes into account exchange rate moves.” The story, which it attributed to OPEC officials, further stated that “the Secretariat is running a new trial crude oil Basket in parallel with the existing one…”

The OPEC Secretariat wishes to state that this story is totally untrue, as OPEC has not introduced any new formula in calculating the OPEC Reference Basket price different to what it has been using since the 1980s. The OPEC Reference Basket price is still calculated using the same formula, which is based on a simple average of closing quotations of the seven crudes that make up the Basket.

The crudes comprise Saharan Blend, Bonny Light, Dubai, Minas, Arabian Light, Tia Juana Light, and Isthmus.