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OPEC agrees to boost oil production by 1 million b/d

22 June 2018 15:31 (UTC +04:00)

OPEC has agreed to boost oil production, achieving a last-minute compromise that overcame Iran’s threats to veto any supply hike, Bloomberg reported.

“We have an agreement” to make a 1 million barrel-a-day adjustment on paper to the production cuts implemented by the group in cooperation with allies including Russia, Saudi Energy Minister Khalid Al-Falih told reporters in Vienna. In reality, the accord adds 600,000 barrels a day of oil to the market, about 0.5 percent of global supply, because several members are unable to raise output, said a delegate.

The new deal would effectively roll back the deeper-than-intended cuts from nations such as Venezuela, returning the curbs to the level originally agreed in 2016, the delegate said.