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OPEC set for one million barrel production increase [The Morning Call]

OPEC set for one million barrel production increase [The Morning Call]

The Morning Call

<p>The Organization of the Petroleum Exporting Countries (<span class="caps">OPEC</span>) member states have agreed to increase the oil production by one million barrels per day from July 1, a decision reached at a meeting on Friday in Vienna.</p> <p><span class="caps">OPEC</span> member states and other world oil pumpers have jointly cut their production by 1.2 million barrels per day since 2016 to balance the oil market for 18 months. However, due to the limited productivity of some countries, like Libya and Venezuela, the actual production reduction has overpassed the agreed amount, lifting the oil prices to the maximum of 80 U.S. dollars per barrel from 27 at the end of 2016.</p> <p>Major oil consumers the United States, China and India had urged Vienna-based <span class="caps">OPEC</span> to release more supply to prevent an oil deficit that would hurt the global economy.</p> <p>However, the decision confused some in the market as <span class="caps">OPEC</span> gave opaque targets for the increase, making it difficult to understand how much more it will pump. Oil prices rose as much as 3 percent.<br /> <span class="caps">OPEC</span> said it would go back to 100 percent compliance with previously agreed output cuts but gave no concrete figures. The deal gave a tacit green light to Saudi Arabia to produce more than currently allowed by <span class="caps">OPEC</span> as the 14-nation organization avoided setting individual country targets.</p> <p>With us on the programme is Gaya Mahaman Laouan. Gaya, the Executive Secretary, African Petroleum Producers Association joins us from Athens, Greece.</p>

The Morning Call

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The Morning Call

The Morning Call is about you. We want to share your opinions on our programme. If you want to contribute to The Morning Call, here are the best ways to get in touch : For more details on how to contribute, click here.