The Organization of the Petroleum Exporting Countries (OPEC) agreed on Friday on a modest increase in oil production from July, Reuters reports, after its de-facto 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.
The increase followed days of heavy diplomacy by Saudi Arabia, beginning with a visit by Crown Prince Mohammed bin Salman to Russia at the start of the world cup to discuss strategy with Russian President Vladimir Putin, and throughout this week with Energy Minister Khalid Al-Falih working to persuade other OPEC members.
Khalid Al-Falih, Saudi Arabia’s Minister of Energy, Industry, and Mineral Resources.
Two OPEC sources told Reuters the group agreed that OPEC and its allies – led by Russia – should increase production by about 1 million barrels per day (bpd), or 1 percent of global supply.
OPEC has been over-delivering on a pact in place since January 2017, cutting around one and a half times the promised amount, Reuters reported in a separate explainer article on the recent developments with the organization.
Recently, President Trump has expressed his frustration with OPEC through Twitter, blaming OPEC for skyrocketing prices and saying that continued price increases were “not good.”
