OPEC Surprises Market With Boost in Oil

Lends hand to world economy dragged by US credit-market crisis

By Caroline Zimmerman, Newser User

Posted Sep 11, 2007 8:36 PM CDT

(Newser) – OPEC surprised traders today by boosting oil production for the first time in a year, Bloomberg reports. Concerns over the U.S. market crisis dragging down the world economy inspired the spike of 500,000 barrels a day. The US reportedly prodded Saudi Arabia to overcome the opposition of other OPEC members and lead them to set a new target of 27.2 million barrels a day.

Algeria, Venezuela and Iran opposed the hike, saying it could trigger a dramatic decline in oil prices. One executive countered that the decision "improves the credibility of the organization because it shows they recognize demand,” and will “do something to avoid the market overheating.” But demand may not be met, as crude oil rose 74 cents to a record high of $78.23 today.

Venezuela's Minister of Energy and Petroleum Rafael D. Ramirez talks to journalists prior to the start of a meeting of oil ministers of the Organization of the Petroleum Exporting countries at the OPEC's... (Associated Press)

Overview of a meeting of oil ministers of the Organization of the Petroleum Exporting countries at the OPEC's headquarters in Vienna, on Tuesday, Sept. 11, 2007. (AP Photo/Ronald Zak) (Associated Press)

Angola's Minister of Petroleum Desiderio Costa laughs prior to the start of a meeting of oil ministers of the Organization of the Petroleum Exporting countries at the OPEC's headquarters in Vienna, Tuesday,... (Associated Press)

Minister of Petroleum and Mineral Resources Ali Ibrahim Naimi from Saudi Arabia laughs prior to the start of a meeting of oil ministers of the Organization of the Petroleum Exporting countries at the... (Associated Press)

Secretary General of the OPEC conference Abdalla Salem El-Badri from Libya speaks during a news conference after a meeting of oil ministers of the Organization of the Petroleum Exporting countries at... (Associated Press)

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OPEC Surprises Market With Boost in Oil

Lends hand to world economy dragged by US credit-market crisis

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Oil Gushes to Record $105.96

A weakening dollar and falling inventories of oil are pushing crude prices up

$100 Oil Fuels Recession Fears

Speculation is driving oil up, and that's a concern for consumers, economists

Oil-Price Surge Fuels Global Investing Binge

Producers' deep pockets evident in Abu Dhabi's Citigroup outlay

All Eyes on OPEC for Oil Price Relief

Saudis expected to boost output as prices close in on $100

Oil Tops $99 as Dollar Sinks

Weak greenback and strong demand could send crude over $100 a barrel today

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Lends hand to world economy dragged by US credit-market crisis

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OTHER STORIES ON OUR RADAR

oil • OPEC • fuel economy • global economy • oil price • crude oil

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Oil Gushes to Record $105.96

A weakening dollar and falling inventories of oil are pushing crude prices up

$100 Oil Fuels Recession Fears

Speculation is driving oil up, and that's a concern for consumers, economists

Oil-Price Surge Fuels Global Investing Binge

Producers' deep pockets evident in Abu Dhabi's Citigroup outlay

All Eyes on OPEC for Oil Price Relief

Saudis expected to boost output as prices close in on $100

Oil Tops $99 as Dollar Sinks

Weak greenback and strong demand could send crude over $100 a barrel today

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Newser By Users

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