PARIS, Dec. 16 (UPI) -- A decision by the OPEC oil cartel to increase production limits is a good move considering the uncertain economic future, the head of the IEA said.
The Organization of the Petroleum Exporting Countries at its December meeting cited a slow and volatile economy in deciding on a crude production ceiling of 30 million barrels per day.
International Energy Agency Executive Director Maria van der Hoeven was quoted by the Platts news service as saying that was the right move to make.
"We welcome OPEC's expressed commitment to making ample supplies available to the market," she said. "This is particularly important given the fragile state of the world economy."
OPEC during its meeting didn't include quotas for its individual members. Members during the summer made unilateral moves to compensate for the Libyan crude disruption.
The July OPEC meeting left production quotas static despite concerns higher energy prices and supply constraints from war-torn Libya would hurt an already weak economy. The IEA at the time called on its members to release oil from strategic reserves.
OPEC in its monthly oil report for December noted volatility was the underlying theme for the global economy.
