OPEC to Increase Oil Production

March 29, 2000 11:40 AM, EST

The Organization of Petroleum Exporting Countries agreed early Wednesday to put more oil on the market to ease soaring fuel prices and meet growing demand. Bloomberg News reports that the cartel members agreed to increase production by 7% (1.45 million barrels per day) after two days of talks in Vienna.

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Iran, which refused to go along with the agreement, announced it would increase its' production by over 300,000 barrels per day.

Bloomberg is also reporting that crude oil prices dropped immediately on the news, hitting a 10-week low on some exchanges.

According to a Reuters report, U.S. Energy Secretary Bill Richardson said Washington has backed off its threat to release oil from the national strategic petroleum reserve in the wake of the agreement.

President Clinton hailed the accord as good news for the global economy. "These increases will help sustain worldwide economic growth and provide greater balance between oil supply and demand," he was quoted as saying by Reuters.