OPEC Considers Production Increase

Due to instability in Venezuela and the threat of a U.S. attack on Iraq, OPEC is considering increasing oil production by approximately 500,000 barrels per day. According to an OPEC source the increase could take place by mid-January.

Opec has a self-imposed price band mechanism that requires the group to increase production by 500,000 barrels a day if the average price of seven selected crude oils stays above $28 a barrel for more than 20 consecutive trading days. The OPEC basket was $29.85 on Tuesday, according to Opecna. It was the 11th day the basket exceeded the price ceiling.