OPEC to Consider Production Hike

Reuters is reporting that OPEC may raise oil production targets at the body's next meeting this Wednesday. Andrew Schneider has the story.

Citing delegates within the organization, Reuters says OPEC ministers may raise oil supply targets by between 1 million to 1 ½ million barrels per day. The aim would be to keep high energy prices from hobbling the still troubled world economy.

“I think at this point, OPEC’s production target is more symbolic than real.”

Amy Myers Jaffe, director of the Energy Forum at Rice University’s Baker Institute.

“Most countries are producing what they want to produce or are willing to produce or can produce, and the only significant event for the oil market is whether Saudi Arabia is going to put more oil on the market.”

Jaffe says economic conditions in the U.S. and China and instability in the Middle East will play a greater role than OPEC supply targets in determining the price of oil in coming months.  OPEC last raised its production targets in 2007.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

More Information