The value of Algerian Saharan Blend crude oil, one of the best quality crude oils which only a year ago commanded a premium of up to $2 per barrel over North Sea Brent Blend
, has collapsed to a discount of more than $2.50.
This brings us to the biggest price story of 2011--the divergence of the world's two most prominent benchmark crude oil streams: West Texas Intermediate (WTI) and Brent Blend
. Because these two crude streams are very similar in composition (both are relatively light and sweet), the market has historically priced the two streams within just a couple of dollars of one another.
The prices of crude oil (Brent Blend
) rose by some 3%, measured in Norwegian crowns, and 2%, measured in US dollars.
Increasing oil output will lower prices but the Brent blend
would remain above the USD 100 margin.
The price of crude oil is sold at par with the Brent Blend
. Captain field produced 13.24 million barrels of crude oil during 2009.
US light crude traded at $30.35 a barrel, down two cents, while London Brent blend
was trading $26.85 a barrel.
The net effect will be an average price for dated Brent Blend
of $24.5/barrel in 2003, falling below $20/barrel in 2004."
In London, Brent Blend
crude was up $3.20 to $30.65 a barrel for the October futures contract at 4 p.m., while gold surged $19.35 to close at $291.00 an ounce.
However, assuming OPEC members' current quotas of 24.692 m b/d, excluding Iraq, remain intact after July, the London-based Centre for Global Energy Studies (CGES) projects the price for international benchmark Brent blend
will reach $26 to $27 a barrel in the third quarter.
The oil slump this year alone has seen the price of Brent blend
, the North Sea marker crude, fall around USD6 to USD13 a barrel currently.
The price of the Brent Blend
crude went down to reach USD 63.18 pb, the same case with the West Texas Intermediate, which went down to reach USD 55.88 pb.