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OPEC, non-cartel agree to share increased oil production

By Allen Cone
OPEC, non-cartel agree to share increased oil production
This is view of a petroleum processing plant in the eastern Saudi Arabia city of Jubail. Saudi Arabia, the second-leading oil producer has agreed to an increase in oil product. OPEC and non-cartel nations agreed to an increase of about 1 million barrels a day. File Photo by EPA

June 23 (UPI) -- OPEC nations and other countries outside the cartel agreed Saturday to share increased oil production in a move that is seen as stabilizing global energy prices.

On Friday, the Organization of the Petroleum Exporting Countries agreed to boost production. On Saturday, ministers of the cartel met with major producers outside OPEC, including Russia, Mexico and Kazakhstan, in Vienna.

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They endorsed an extra 1 million barrels a day, said Ecuador's Minister of Hydrocarbons Carlos Perez.

Over six months that equates to an extra 600,000 to 700,000 barrels a day of crude to the market, Oman's Oil Minister Mohammed Al Rumhy said.

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The nations didn't agree on how the production increase would be split between OPEC and non-OPEC nations.

No. 1 oil producer Russia, which is not a member of OPEC, and No. 2 Saudi Arabia had suggested an increase.

On Saturday, Russian Energy Minister Alexander Novak said his nation supports a boost of a million gallons a day boost starting next month. Russia had originally wanted a 1.5 million increase.

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With oil prices hitting $80 a barrel last month for the first time in three years, Novak said the market needed to be rebalanced.

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The agreement came about Friday after Iran, which wanted no more than 500,000 more barrels a day, agreed to come on board.

Saudi Arabia's Khalid al-Falih, the nation's oil minister, told journalists the nation plans an increase of "hundreds of thousands, not tens of thousands, of barrels."

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Saudi Aramco, the nation's oil company, has been ramping up production to increase exports from ports in July. "Ships have been scheduled, and it will be hitting the markets, I assume, in August," he said.

U.S. President Donald Trump posted Friday on Twitter: "Hope OPEC will increase output substantially," Trump said on Twitter. "Need to keep prices down!"

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