DEFINITION of 'OPEC Basket'
A weighted average of oil prices collected from various oil producing countries. This average is determined according to the production and exports of each country and is used as a reference point by OPEC to monitor worldwide oil market conditions.
BREAKING DOWN 'OPEC Basket'
As of June 15, 2005 the basket was changed to represent the oil produced by OPEC members. The OPEC basket includes, Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Bonny Light (Nigeria) and Arab Light (Saudi Arabia), among others.