P. M. BRIEFING : OPEC OKs Modest Production Hike
OPEC oil ministers today reached a tentative agreement to raise their production a modest amount to keep prices strong in the coming months.
Venezuelan Oil Minister Celestino Armas, asked if a deal had been struck, replied, “Yes, of course.”
Saudi Arabia’s Hisham Nazer said the new production ceiling will be 19.5 million barrels a day. The current cap stands at 18.5 million barrels for the first six months of the year.
But the cartel, according to analysts, has been producing above that level in recent months. As a result, analysts say an increase of about a million barrels in the supply cap should keep crude prices--and consumers’ gasoline prices--steady.
It was unclear whether the agreement would span six months or be for a shorter period of time.
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