Oil Prices Drop Again After OPEC Raises Production Limit
The Organization of Petroleum Exporting Countries (OPEC) agreed at its 168th meeting to increase the cap on oil production to 31.5 million barrels a day.
The announcement caused oil prices to slide further on world markets.
Reuters reported on Friday December 4 that the OPEC announcement drove down the price of Brent Crude nearly two dollars a barrel to about $43.
At the last OPEC meeting, the cap was set at 30 million barrels a day, and analysts had speculated that the current meeting would bring no change or even a decrease.
With the lifting of international sanctions, Iran has been looking to increase its oil exports so it welcomes the increase in the OPEC cap.
The oil-producing countries that comprise OPEC are Iran, Saudi Arabia, Iraq, Algeria, the United Arabic Emirates, Kuwait, Libya, Nigeria, Qatar, Ecuador, Angola and Venezuela.