OPEC basket price rose to $28.46 on Friday
Tuesday, October 3 2000 - 04:00 AM WIB
The price of OPEC's basket of seven crudes rose to $28.46 a barrel on Friday from $28.08 a barrel on Thursday, the OPEC news agency said on Monday, quoting the OPEC secretariat.
This leaves the basket still above OPEC's $22-$28 target range.
At its September 10 meeting OPEC said it would resume on October 1 an informal mechanism agreed between OPEC producers in June whereby if the basket stays outside a $22-$28 band crude production will be adjusted.
Under the mechanism, which came into force on Monday, if the price remains above the range for 20 working days or below the range for 10 working days, crude production would be adjusted by 500,000 barrels a day either way to try to bring the price back into the range.
If basket remains above $28, an output rise would theoretically be triggered towards the end of this month but OPEC ministers said they would remain flexible in their response to the mechanism. They meet on November 12.
The OPEC basket comprises Algeria's Saharan Blend, Indonesia's Minas, Nigeria's Bonny Light, Saudi Arabian Light, Dubai of the UAE, Venezuela's Tia Juana and Mexico's Isthmus. (*)