Monthly average crude oil prices of the OPEC basket 2021-2023

In October 2023, the average price of the OPEC basket was 91.78 U.S. dollars per barrel. Monthly averages have been declining again as rising inflation dampens the global market outlook. The OPEC basket is a weighted average of prices for petroleum blends produced by OPEC countries. OPEC stands for “Organization of the Petroleum Exporting Countries,” and was founded in 1960 in Baghdad, Iraq. The main aim of OPEC is to coordinate the oil policies of its members, and thus to have more influence on the international oil market. It is used as an important benchmark for crude oil prices.

The OPEC basket oil price

The OPEC crude oil price is defined by the price of the so-called OPEC (reference) basket. This basket is an average of the prices of petroleum blends that are produced by the OPEC members. The following countries are members of this organization: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the United Arab Emirates. Some of these oil blends are, for example: Saharan Blend from Algeria, Basra Light from Iraq, and Arab Light from Saudi Arabia. The OPEC reference basket includes both heavy and light crude oils, and is heavier than most other crude oil mixtures (benchmarks). OPEC's oil production amounted to 31.7 million barrels per day in 2021.

Oil price benchmarks

The OPEC basket is one of the most crucial benchmarks for crude oil prices worldwide. Other significant benchmarks are UK Brent, West Texas Intermediate (WTI), and Dubai Crude (Fateh). Because there are many types and grades of oil, such benchmarks are indispensable for referencing them on the global oil market. Looking at the OPEC price within the last two years, the lowest price was 40.08 U.S. dollars per barrel in October 2020, a result of over-supply and storage fears.