OPEC on Wednesday agreed to raise its production ceiling to the tune of 500,000 bpd as of April 1. The extra supply would hence push up daily output to 27.5 million bpd from 27 million bpd.
An informed source at OPEC said that besides the increase in the ceiling, the cartel will have yet a fresh 500,000 bpd increase in the ceiling in near future. The source added that the second extra supply package (500,000 bpd ) might happen any time and it would be announced by the OPEC president.
Saudi Oil Minister Ali al-Naimi has voiced pleasure over the decision to raise output. Speaking to reporters after the OPEC meeting, Naimi said the market decides prices. Saudi Arabia proposed a 500,000 bpd increase in the OPEC's output in midst of rising prices.
