Baku, December 4 AZERTAC
OPEC has agreed to raise its output ceiling to 31.5 million barrels per day at a meeting on Friday, OPEC sources said in what appeared to be an effective acknowledgment of existing production. The quota hike is being spun as 'matching actual production' and some newswires confused the spin with the reality that the quota went up.
None of this means anything for actual production but it shows that OPEC doesn't really care to jawbone or cares about the optics. It shows th
ey're more committed than ever to flooding the market with cheap oil.
The other news is that Indonesia has joined OPEC after sitting on the sidelines for 7 years. That's a non-factor for prices but it confused the market momentarily because some thought the new quota included Indonesia. Bloomberg is reporting that the 31.5 mbpd figure doesn't include Indonesia, citing sources.
The official decision isn't out yet.