OPEC countries to pump more oil to contain price increase

VIENNA (AP) — The countries of the Organization of the Petroleum Exporting Countries (OPEC) cartel agreed on Friday to pump 1 million barrels more crude oil per day, a move that should help contain the recent rise in global energy prices.

Questions remain, however, over the ability of some OPEC nations — Iran and Venezuela in particular — to increase production as they struggle with domestic turmoil and sanctions.

After a meeting in Vienna, Emirati Energy Minister Suhail al-Mazrouei said the cartel decided to fully comply with its existing production ceiling.

Friday’s decision means the Organization of the Petroleum Exporting Countries will observe the production level it agreed on in late 2016 when it cut output by 1.2 million barrels a day. In practice, its combined output was even less due to production problems. That has since then helped push up the price of oil by almost 50 percent.

Non-OPEC countries like Russia had agreed in 2016 to participate in OPEC’s effort to raise prices, cutting 600,000 barrels a day of their own production.

They will discuss with OPEC on Saturday on whether to increase their own production.

While OPEC’s largest producer, Saudi Arabia, was open to higher production, Iran has been hesitant because of its trouble to increase output and tensions with the U.S. President Donald Trump has been calling publicly for the cartel to help lower prices by producing more.

After OPEC’s deal on Friday, Trump tweeted: “Hope OPEC will increase output substantially. Need to keep prices down!”

Some analysts note that while Trump has blamed OPEC, his policies have also helped increase the cost of oil by, for example, limiting exports from Iran.

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