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Oil prices fall as OPEC confirms increased output

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Oil prices fall as OPEC confirms increased output

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Oil prices have fallen to their lowest levels in over two months as the producers cartel OPEC said it has increased its output by two million barrels per day in the last six weeks. Sheikh Ahmad al-Fahd al-Sabah, the president of the Organization of Petroleum Exporting Countries, said they are pumping at their highest level in 25 years and that means energy consumers around the world will be well supplied through into the second half of the year.

He added that most OPEC members are following a policy of producing at maximum levels to encourage a build up of reserves in the coming months. The idea is to create a buffer for strong demand later this year. Meanwhile, the European Union has announced it will meet OPEC representatives on 9 June to discuss oil prices as part of the process of reducing the EU’s growing dependency on energy imports.

Energy ministers meeting in Paris say they will also introduce better ways to check production capacities aand vailable stocks to reduce speculation and make prices less volatile.