Oil up 4% as Opec raises output, albeit modestly
Opec is to raise output by about 1-million bpd in nominal terms with no individual targets for Opec members, with production increases to take effect from July 1
New York — Oil prices jumped more than 4% on Friday after major producers agreed to modest crude output increases to compensate for losses in production at a time of rising global demand. Oil cartel Opec and other top crude producers, meeting in Vienna, agreed to raise output from July by about 1-million barrels per day (bpd) after its de facto leader Saudi Arabia persuaded Iran to co-operate in efforts to reduce the crude price and avoid a supply shortage. The real increase, however, will be about 770,000 bpd, according to Iraq, because several countries that recently suffered production declines will struggle to reach full quotas, while other producers may not be able to fill the gap. The actual output increases set a bullish tone, as they came in below some of the highest figures that had been discussed prior to the meeting. “There was a lot of anticipation in the market that there was going to be a lot of new oil coming to market, and that isn’t going to happen, at least for now...
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