1. OPEC--PROTECTING THE PRICE BAND?

6. OPEC Market Basket For Production Policy Purposes, OPEC has since April 2000 been setting their production ceiling from time to time to try to maintain the value of the OPEC Market Basket between $22/bbl and $28/bbl.

7. OPEC Market Basket The OPEC Basket is made up of the following crude oils: –Saharan Blend (Algeria) –Minas (Indonesia) –Bonny Light (Nigeria) –Arab Light (Saudi Light) –Dubai (UAE) –Tia Juana Light (Venezuela) –Isthmus (Mexico)

8. Target Range

9. OPEC Oil Pricing All OPEC crude oils are sold using market formula prices depending on delivery point. OPEC crude oils are generally sold fob loading port. Pricing formulas most often use a marker price and an adjustment factor. The adjustment reflects location, transportation and quality differences and is set on a monthly basis.

10. OPEC Oil Pricing Sales to the US are tied to West Texas Intermediate Nymex futures prices. Sales to Europe are tied to the Brent Market and may use Dated Brent, an informal cash market quoted by the pricing services (Platt’s, Reuters, Telerate), or more recently the so-called B-Wave or Brent Weighted Average as calculated by the International Petroleum Exchange in London.

11. OPEC Oil Pricing Sales to Asia are tied in most cases to an average of Dubai and Oman spot prices as quoted by the price services. Qatar ties its sales price to the Oman official posting. Venezuela uses a Market Basket of Venezuelan and refined products sold on the world market.

14. Current Key OPEC Crude Pricing Terms Saudi Light--Europe = B-wave - 2.25 Saudi Light--Asia = ((Oman +Dubai)/2) + 0.30 Saudi Light--US(Gulf & West) = WTI - 5.10

15. Key OPEC Crude Pricing Terms Iraq Basrah--Europe = Dtd Brent - 3.20 Iraq Basrah--Asia = ((Oman+Dubai)/2) - 0.40 Iraq Basrah--US = WTI - 6.55 Iraqi prices are subject to UN approval, above prices subject to “surcharge”