OPEC likely to raise oil supplies to support world economy

PanARMENIAN.Net - OPEC producers on Wednesday, June 8, hammered out a deal to raise oil supplies for the first time in four years to support the fragile world economy.

Under pressure from consumer countries to contain fuel inflation, Saudi Arabia hopes to convince the Organization of Petroleum Exporting Countries to lift production by as much as 1.5 million barrels a day, Gulf delegates said.

They said that one option could be an initial one million bpd increase with a promise of another 500,000 bpd to come in three months time.

Iran offered to host an emergency meeting within three months to review policy, an Iranian source said. Initial opposition to an increase from Iran shifted to a proposal for a modest 700,000-one million bpd increase during a closed session of ministers, the source said, according to Reuters.

Iran's acting oil minister Mohammad Aliabadi struck a conciliatory note at the start of the meeting. "Iran is a member of OPEC and will go with the decision of the majority," Aliabadi told reporters.

As OPEC's biggest producer and the only one with any significant spare capacity, Saudi usually gets its way. But long-time price hawks Iran and Venezuela plus Ecuador, Iraq and Angola all want to keep oil prices above $100 a barrel. Brent crude traded near $116 a barrel.