OPEC to boost oil production target

OPEC members agreed today to boost their oil production target by 6.5% to 24.5 million barrels a day to cover a shortfall in oil exports from Venezuela.

The increase will take effect on February 1, OPEC President Abdullah bin Hamad Al Attiyah said.

The Organisation of Petroleum Exporting Countries announced the increase in the hope of calming fears of a supply crisis caused by a strike in Venezuela begun on December 2 by political opponents seeking to oust President Hugo Chavez.

The strike has slashed the country’s exports by about 2 million barrels a day. Venezuela is normally OPEC’s third-largest producer and a major oil supplier to the United States.

“OPEC is trying to send a very strong message that it will do its utmost to stabilise demand and supply,” Al Attiyah said.

OPEC pumps about a third of the world’s crude supplies, which total 79 million barrels a day.