Attempting To Calm Oil Prices, OPEC Considers Raising Supply

SINGAPORE (Simon Webb) - OPEC is considering raising crude supply next week for the first time since 2007 in a move that could weaken $100 oil prices and lessen the drag of high energy costs on global economic growth. The Organization of the Petroleum Exporting Countries, which pumps more than a third of the world's oil, may raise supply targets by as much as 1.5 million barrels per day (bpd) when ministers meet on June 8, a delegate said on Thursday. "There is a need for an increase to replace the loss from Libya," the delegate said. "Oil prices are too high. $100 oil is scaring people." The most likely outcome of the meeting would be for a rise of 1 million bpd, the delegate added.

"SINGAPORE (Simon Webb) - OPEC is considering raising crude supply next week for the first time since 2007 in a move that could weaken $100 oil prices and lessen the drag of high energy costs on global economic growth""That would be calming for prices," the delegate said. A target rise of 1 million bpd would result in only a small increase in actual oil supply from the group, the delegate said. That was because part of the rise would simply absorb above-target supply that some members of the group in OPEC were already pumping, the delegate added. Story continues below