OPEC to Increase Production by 1M Barrels

VIENNA, Austria - OPEC, will increase its oil production by 1 million barrels a day later this year in a move widely viewed as more symbolic than significant � given that the cartel is already exceeding the new quota.


Kuwaiti Oil Minister Sheik Ahmad Fahad al-Ahmad al-Sabah said Wednesday the cartel agreed to the decision to raise output by nearly 4 percent, adding it would take effect Nov. 1.


"We will give a signal to the market that we are working hard for the stability of the market," he said.


The decision will increase OPEC's self-imposed output limit for all its members, except Iraq (news - web sites), from 26 million barrels a day to 27 million barrels, but the cartel is already producing 27.4 million barrels.

story.news.yahoo.com... =&e=6&u=/ap/20040915/ap_on_bi_ge/opec_meeting_23

"It's a gesture of goodwill," Algerian Oil Minister Chakib Khelil told the Associated Press.


OPEC's current price band is $22 to $28.