The Organization of Oil Producing Countries—More commonly known by the acronym “OPEC”—is deliberating on whether or not to increase oil supply to the global market in an effort to bring price down. The move would be the first time OPEC has increased supply since 2007, and would be an effort to aid struggling economies worldwide as oil price hikes have crippled growth.
OPEC pumps more than one-third of the world’s crude oil supply and may up available supply by as much as 1.5 million barrels per day (bpd). OPEC Ministers are scheduled to meet on June 8 to formally decide on what measures to take.
"There is a need for an increase to replace the loss from Libya," the delegates said. "Oil prices are too high. $100 oil is scaring people." Delegates stated that a rise of 1 million barrels per day is the likely outcome of the meeting. “That would be calming for prices,” delegates added.
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OPEC already upped supply by 1.4 million bpd in May to 26.23 million bpd. Original targets for May were only intended to be 24.84 million bpd.
Since Saudi Arabia holds the majority of OPEC’s spare supply capacity, the burden of boosting supply would fall unto it. Other OPEC nations, such as Iran, Venezuela and Libya would likely not increase supply according to OPEC insiders.