Opec to open oil taps

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Russian Energy Minister Alexander Novak said on Saturday he was happy with the decision even though he had previously pushed OPEC and non-OPEC to raise output by as much as 1.5 million bpd.

The contentious meeting took place under the shadow of vituperation from U.S. President Donald Trump, who anxious that high oil and gasoline prices would be politically painful ahead of midterm elections later this year. The 14 member nations of OPEC - mainly Saudi, Venezuela, Iran and Iraq - controlled a little more than 80 per cent of world crude oil reserves in 2016. If we lose a million bpd of output from Venezuela and Iran in the fourth quarter, where will all these barrels come from?

In the end, a vaguely-worded statement that made no mention of the one-million figure allowed all sides to save face.

Production levels from participating members put compliance at more than 100 percent, though some of that is attributed to Venezuela.

Markets were disappointed with the modest output hike, sending crude prices soaring on Friday. Benchmark Brent oil rose by $2.5 or 3.4 percent on the day to $75.55 a barrel. Russia, a non-member, is the second largest oil producer after Saudi.

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The price of oil jumped after the announcement, with the worldwide benchmark, Brent, gaining $1.61 to $74.66 a barrel.

After an OPEC meeting in Vienna, Emirati Energy Minister Suhail al-Mazrouei said the cartel made a decision to fully comply with its existing production ceiling.

Al-Falih also said the real increase for OPEC and non-OPEC would be smaller than the nominal gain of 1 million bpd.

Oil markets weren't calmed by the agreement announced Friday by the Organization of the Petroleum Exporting Countries after a contentious week of meetings.

Support for the increase, which had been proposed by Saudi Arabia against objections from Iran, was unanimous, he said.

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Now among OPEC members, Venezuela is the country whose production is well below the amount allowed under the 2016 agreement.

This week's OPEC talks in Vienna have been the most politically charged in years.

U.S. President Donald Trump was among those wondering how much more oil OPEC will deliver.

"Hope OPEC will increase output substantially", Trump tweeted early Friday.

Iran's Zanganeh earlier this week accused Trump of trying to politicise OPEC and said it was United States sanctions on Iran and Venezuela that had helped push up prices.

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