The Organization of Petroleum Exporting Countries (OPEC) has set a record oil-output ceiling of 31.5 million barrels a day in its latest meeting sending crude prices lower by a percent to 43.43 dollars a barrel.
The increase from a previous target of 30 million barrels doesn’t include production from Indonesia, which joined the group after a break of almost seven years.
Saudi Arabia, OPEC’s biggest producer has remained opposed to a production cut unless countries outside the group cooperate.
The cartel also needs to prepare for increased shipments from Iran when international sanctions are lifted.
Oil prices have more than halved since July last year following weak demand and increased supplies from the United States.