Eight OPEC oil-producing nations Thursday agreed to boost crude oil production beginning in May.
OPEC said in a statement that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman “reaffirmed their commitment” to voluntary production adjustments as they announced plans to boost production to a more-than-expected 411,000 barrels a day.
The move sent oil prices lower with Ice Brent which at $65.50 a barrel in London trading. Nymex WTI prices are at $62.80 per barrel as I publish
The OPEC countries were expected to ramp up production by just under 140,000 barrels a day. They said this move will increase the compensation of the nations producing more oil. The added production is equivalent to three monthly increments of increases, according to OPEC. It comes as the 8 nations are ending a voluntary reduction in their crude oil output of 2.2 million barrels a day. The larger 22-member OPEC organization has a cut of 3.66 million barrels a day still in force through the end of 2026.