OPEC Apparently Ready to Boost Production

OPEC appeared to resolve an internal row over another increase in oil supplies when cartel president Ali Rodriguez told member countries to prepare to pump an extra 500,000 barrels a day. In a statement, Rodriguez, the Venezuelan oil minister, said producers should expect to raise output before the end of July if prices do not fall. Output for 10 members of the Organization of Petroleum Exporting Countries, excluding Iraq, would rise by 2% to 25.9 million barrels daily. The announcement comes two weeks after Saudi Arabia, OPEC’s leading power, said it wanted to produce an additional 500,000 barrels a day on its own to push crude prices down to OPEC’s target of $25 a barrel. Oil industry executives said that, in the face of pressure from fellow OPEC nations to maintain cartel unity, Riyadh appeared to have backed down from its original plan. In New York, near-term crude oil futures fell 57 cents to $30.83 a barrel.