The price of OPEC basket of thirteen crudes stood at $29.35 a barrel on Tuesday, compared with $28.44 the previous day, according to OPEC Secretariat calculations.
The new Opec Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Meanwhile the BBC reports that Iran’s Opec envoy is reported as saying it is “illogical” for it to join the oil output freeze agreed by a Russian and Saudi Arabian-led group on Tuesday.
Mehdi Asali, quoted in the Iranian newspaper, Shargh, said Iran will continue to increase oil production until it reaches pre-sanction levels.
Venezuela’s oil minister is holding talks in Tehran to broker a deal with Iran and Iraq on Wednesday.
Iran has only just restarted oil exports after sanctions were lifted.
The move by four countries, including Venezuela and Qatar, is the first of its kind in 15 years.
It is designed to reflate oil prices, which have sunk by about 70% from their recent peak of $116 in June 2014 thanks to oversupply as the global economy slows down.
The plan though failed to convince oil traders.
The “freeze” in output at January levels simply allows oil producers to continue pumping at record levels.
After falling on Tuesday and early Wednesday, the price of a barrel of Brent crude rose by 3% to $33.10 a barrel. US crude was up 2.6% at $29.78.
FGE, international energy analysts, said: “Moves to freeze output at January levels will make little difference to the overall supply-demand balance this year and will not be enough to clear the 600,000 barrels per day surplus projected for the year.”