OPEC agrees to pump more oil, prices still jump

VIENNA — The countries of the OPEC cartel agreed Friday to pump 1 million barrels more crude oil per day, a move that should help contain the recent rise in global energy prices.

Questions remain, however, over the ability of some OPEC nations — Iran and Venezuela in particular — to increase production as they struggle with domestic turmoil and sanctions.

Oil prices rose after OPEC’s announcement, which analysts cited as evidence investors believe the actual increase in production will be smaller, about 600,000 to 700,000 barrels a day.

After an OPEC meeting in Vienna, Emirati Energy Minister Suhail alMazrouei said the cartel decided to fully comply with its existing production ceiling.

Because the group had been producing below that level, that means an increase in production of “a little bit less than 1 million barrels,” the Emirati minister said.

How that translates into effective production increases is uncertain, as some OPEC countries cannot easily ramp up production. Iran, for example, has been hit by U.S. sanctions that hinder its energy exports. Venezuela’s production has dropped amid domestic political instability.

The price of oil jumped after the announcement, with the international benchmark, Brent, gaining 2.5 percent to $74.84 a barrel in London, and U.S. crude climbing 4.9 percent to $68.72 a barrel in afternoon trading in New York — on track for its biggest one-day rise since OPEC agreed in November 2016 to cut production.

Al-Mazrouei noted the decision “is challenging for those countries that are struggling with keeping their level of production.” However, he indicated that some countries could pick up production if others lag.

“We will deal with it collectively,” he said.