The Organization of Petroleum Exporting Countries (OPEC) was able to reach a tentative deal to increase oil production, overcoming disagreements from Iranian representatives and ultimately…
The Organization of Petroleum Exporting Countries (OPEC) was able to reach a tentative deal to increase oil production, overcoming disagreements from Iranian representatives and ultimately giving relief to drivers everywhere.
Members of OPEC were able to reach a compromise during their meeting in Vienna, Austria, on Friday. Overcoming initial objections from Iran, the 14-member body and allies agreed to increase oil production by 600,000 barrels per day. OPEC representatives will meet again on Saturday to ratify the agreement.
The decision comes as a compromise after Iranian oil minister Bijan Zangeneh walked away from negotiations on Thursday when Russia and Saudi Arabia called for an increase in production by 1 million barrels per day. Iran vehemently objected to President Donald Trump’s tweet on June 13 that blamed the oil cartel for rising gas prices. The U. S. is to blame for rising international oil prices, Zangeneh said in response, citing Trump’s withdrawal of the Iran Agreement.
Trump encouraged OPEC to “substantially” increase production in a tweet sent Friday morning.
Hope OPEC will increase output substantially. Need to keep prices down!
— Donald J. Trump (@realDonaldTrump) June 22,2018
OPEC chose to decrease supply in 2016, a move meant to increase the global price of oil. However, unforeseen events caused the price of oil to increase higher than the cartel intended. Upheaval in Venezuela, for example, resulted in the collapse of the socialist country’s oil industry. Mexico has also experienced declines in output. (RELATED: Trump: ‘OPEC Is At It Again’)
Trump requested OPEC — and the organization’s leader, Saudi Arabia — to increase production earlier in June after retail gasoline prices surged to their highest prices in over three years.
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