Opec agrees oil output boost

Last updated at 15:03 03 June 2004


Opec has reached an agreement today to raise its oil production by two million barrels a day next month in a bid to bring down high prices of crude.

The oil cartel, meeting in Beirut, also agreed to raise the target by an additional 500,000 barrels a day in August if necessary.

The decision by Opec ministers was a compromise between influential Saudi Arabia which was seeking an immediate rise in production of 2.5 million barrels a day to reach a ceiling of 26 million barrels a day and other producers, such as Iran, who preferred to raise the ceiling in at least two stages.

Meanwhile, Iraq's new oil minister said the country will pump $800 million into its oil industry in a drive to boost production and battle insurgents bent on blowing up pipelines.

Thamir Ghadbhan said he aimed to boost sustainable oil production and exports in coming months to two million barrels per day of exports and 2.8 million barrels per day of output.

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