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OPEC to raise daily oil output
VIENNA, Austria (CNN) -- The world's major oil-producing countries decided Sunday to increase production by 1.5 million barrels per day to make up for shortfalls caused by the political crisis in Venezuela. Kuwaiti officials confirmed the decision after the 11-member Organization of Petroleum Exporting Countries held informal meetings in Vienna. Shortfalls of 2 million barrels per day caused by an oil workers' strike in Venezuela have pushed prices past OPEC's target levels of $22-$28 a barrel to more than $30 a barrel in recent days. "OPEC is trying to send a very strong message that it will do its utmost to stabilize demand and supply," OPEC President Abdullah bin Hamad Al Attiyah was quoted by The Associated Press as telling a press conference. OPEC officials said the increase would go into effect February 1 and boost production to 24.5 million barrels a day. That would be an increase of about 7 percent, said United Arab Emirates oil minister Obaid bin Saif al-Nasseri. In Venezuela, embattled leftist President Hugo Chavez is the subject of daily demonstrations aimed at forcing him to resign or call early elections. The six-week crisis has paralyzed Venezuela's oil industry, usually the third-highest producer among OPEC members and the source of about 15 percent of U.S. oil imports. (See story) Before the strike, Venezuela produced about 3 million barrels of oil a day. The strike is costing the country about $50 million a day in lost revenue.
Venezuela beefed up its presence at the meeting, sending oil minister Rafael Ramirez and Ali Rodriguez, president of the state oil company, Petroleos de Venezuela S.A. Ramirez is a past OPEC secretary-general. Neither man would say whether he supported the increase. Before the meetings, Saudi Arabia's oil minister Ali Niami said OPEC needed to compensate for the shortfall but keep the cartel's overall output goal of 23 million barrels a day. To produce more "would really flood the market," Niami said. Fears about a possible U.S.-led war against Iraq have increased the pressure on world oil prices. Iraq has the second-largest oil reserves after Saudi Arabia. OPEC pumps about a third of the world's crude supplies, which total 79 million barrels a day. (Feature) CNN Producer Caroline MacDonald contributed to this report. Copyright 2003 CNN. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.
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