In an effort to calm markets shaken by high oil prices and worries that supplies could grow tight by the end of the year, OPEC has agreed to boost its crude output by 500,000 bpd with effect from Nov. 1. The increase would be based on the group's current production, meaning OPEC was adding actual oil to the market.
High oil prices also played into the decision, and OPEC wanted to send a message to consumers "that we care,", as per a spokesperson, who at the same time declined to say what price range the cartel would consider optimal.
The 12 OPEC members are Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. Angola and Iraq are not bound by the cartel's official output quota.