OPEC to raise output by 1.8%

OPEC will probably increase output by 1.8% this month, in part because Saudi Arabia is pumping more in a bid to lower record prices, figures from PetroLogistics Ltd showed.

The Organisation of Petroleum Exporting Countries will produce 28.5 million barrels a day this month, up 500,000 barrels from April, said Conrad Gerber, head of the Geneva-based company. The 10 OPEC countries that agree to limit supply are pumping 2.85 million barrels a day above their target, the figures show.

Saudi Arabia, OPEC’s largest producer, is boosting output in a bid to lower oil prices that reached a record $41.85 on May 17 in New York and after calls from the US and other consumers for more oil. The group’s production in May is set to be the highest since November, 2000.