OPEC Agrees to Increase Production by 1M Barrels

OPEC agreed on Friday on a modest increase in oil production from July after its leader Saudi Arabia persuaded arch-rival Iran to cooperate amid calls from major consumers to help reduce the price of crude and avoid a supply shortage.


West Texas Intermediate graph

Two OPEC sources said the group agreed that OPEC and its allies led by Russia should increase production by about 1 million barrels per day (bpd), or 1 percent of global supply.

The real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap, OPEC sources have said.

The United States, China and India had urged OPEC to release more supply to prevent an oil deficit that would hurt the global economy.

Saudi Arabia and Russia said they were happy to pump more but Iran had criticized the idea as it faces export-crippling U.S. sanctions.

via Reuters