OPEC countries to pump more oil to contain price increase

The Associated Press
VIENA, Austria - The countries of the OPEC cartel agreed 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.

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

Because the group had been producing below that level, that means an increase in production of "a little bit less than 1 million barrels," the Emirati minister said.

How that translates into effective production increases is uncertain, as some OPEC countries cannot easily ramp up production. Iran, for example, has been hit by U.S. sanctions that hinder its energy exports. Venezuela's production has dropped amid domestic political instability.

Some analysts say that Friday's deal could amount to an effective increase of just 600,000 barrels a day.

The price of oil jumped after the announcement, with the international benchmark, Brent, gaining $1.81 to $74.86 a barrel.

Mazrouei noted that the decision "is challenging for those countries that are struggling with keeping their level of production." However, he indicated that some countries could pick up production if others lag.

"We will deal with it collectively," he said.