OPEC raising oil output, but some members may be too strapped

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 that 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 al-Mazrouei said the cartel decided to 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 3.4 percent to close at $75.55 a barrel in London, and U.S. crude climbing 4.6 percent to close at $68.58 a barrel in New York — its biggest one-day rise since OPEC agreed in November 2016 to cut production.

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

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