OPEC agrees modest hike in oil supply after Iran softens stance

OPEC agrees modest hike in oil supply after Iran softens stance The Saigon Times Daily Saudi Arabia’s Oil Minister Khalid al-Falih talks to journalists at the beginning of an OPEC meeting in Vienna, Austria, June 22, 2018 – PHOTO: REUTERS VIENNA (REUTERS) – OPEC agreed on Friday on a modest increase in oil production from July after its leader Saudi Arabia persuaded arch-rival Iran to cooperate amid calls from major consumers to help reduce the price of crude and avoid a supply shortage. Two OPEC sources said the group agreed that OPEC and its allies led by Russia should increase production by about 1 million barrels per day (bpd), or 1% of global supply. The real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap, OPEC sources have said. The United States, China and India had urged OPEC to release more supply to prevent an oil deficit that would hurt the global economy. Saudi Arabia and Russia said they were happy to pump more but Iran had criticised the idea as it faces export-crippling U.S. sanctions. Iran, OPEC’s third-largest producer, had demanded OPEC reject calls from U.S. President Donald Trump for an increase in oil supply, arguing that Trump had contributed to a recent rise in prices by imposing sanctions on Iran and Venezuela. Trump slapped fresh sanctions on Tehran in May and market watchers expect Iran’s output to drop… [Read full story]