OPEC agrees on a modest increase in oil production from next month

The Organization of the Petroleum Exporting Countries, OPEC, has agreed on a modest increase in oil production from next month. The move comes after its leader Saudi Arabia persuaded arch-rival Iran to cooperate, following calls from major consumers to curb rising fuel costs.

In a statement in Vienna yesterday, OPEC said, it would raise supply by returning to 100 percent compliance with previously agreed output cuts. However, the agreement



failed to announce a clear target for the output increase.

US, China and India had urged oil producers to release more supply to prevent an oil deficit that could undermine global economic growth. 

Meanwhile, OPEC and non-OPEC producers will meet today to iron out details of the pact and then again in September to review the deal. The next formal OPEC meeting was set for December 3.