Opec agrees to raise oil production

Opec agreed on Friday on a modest increase in oil production from next month after its leader Saudi Arabia persuaded arch-rival Iran to cooperate, following calls from major consumers to help reduce the price of crude and avoid a supply shortage.

However, the decision confused some in the market as Opec gave opaque targets for the increase, making it difficult to understand how much more it will pump. Oil prices rose as much as 3 per cent.

“Hope Opec will increase output substantially. Need to keep prices down!” US President Donald Trump wrote on Twitter less than an hour after Opec announced its decision.

The US, China and India had urged Vienna-based Opec to release more supply to prevent an oil deficit that would hurt the global economy.

The Organisation of the Petroleum Exporting Countries said in a statement that it would go back to 100 percent compliance with previously agreed output cuts but gave no concrete figures.

Saudi Arabia said the move would translate into a nominal output rise of around 1 million barrels per day (bpd), or 1 per cent of global supply.