(MENAFN- Khaleej Times) Opec oil countries agreed on Friday to increase their combined production by almost one million barrels a day, though questions remain over some members' ability to do so amid domestic trouble and sanctions.
After a meeting in Vienna, Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, said the group decided to fully comply with its existing production ceiling.
The ministers said they had agreed to boost oil production by around a million barrels a day from July.
"This agreement that we reached is a testimony that we care about the consuming countries," he told reporters. "We listen when they say that they have a concern."
Because the group had been producing below that level, that effectively means an increase in production. The minister said that amounts to "a little bit less than one million barrels."
In reality, the accord will add about 700,000 barrels a day of oil to the market in the second half of the year because several members are unable to increase their output, said Nigeria's oil minister Emmanuel Ibe Kachikwu.
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 US sanctions that hinder its energy exports. Venezuela's production has dropped amid domestic political instability.
The price of oil jumped after the announcement, with the international benchmark Brent gaining $1.61 to $74.66 a barrel.
Al 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.
"I think it will contribute significantly to meet the extra demand that we see coming in the second half," Saudi Energy Minister Khalid Al Falih told reporters after the meeting.
Saudi Arabia, backed by non-member Russia, had argued strongly in favour of increasing production as grumbles in major consumer countries like the United States, India and China have grown about the spike in prices.
The outcome is also a success for US President Donald Trump, who has criticised the Organisation of Petroleum Exporting Countries for inflating the cost of fuel.
"Hope Opec will increase output substantially," Trump said on Twitter after the meeting ended. "Need to keep prices down!"
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