OPEC to Raise Production as Oil Jumps to New Record

OPEC has announced plans to lift production capacity by five million barrels a day by 2012, a day after group president Chakib Khelil announced oil production would not be raised to counter high oil prices.

Speaking to reporters today at the International Energy Forum in Rome, OPEC's secretary general Abdalla Salem El-Badri said the group aims to boost production capacity by nine million barrels a day by 2020, writes AFP.

Output by OPEC producers currently stands at about 32 million barrels a day.

Meanwhile, oil prices continued to rise today hitting record highs above $118, boosted by a jump in oil demand last month from China and supply concerns from key producers including Russia and Nigeria.

US light crude for May delivery was up 25¢ at $117.73 a barrel while London Brent crude was up 40¢ at $114.83 a barrel, after rising to a record peak of $115.03, writes Reuters.

Russia, the world's largest non-OPEC producer, is set to produce less than 2007 while Nigeria's output may be set to fall due to lack of investment.

By staff writer