OPEC energy ministers agreed on Friday to increase oil production from next month by around 1 million barrels per day (bpd), Saudi Energy Minister Khalid al-Falih said following the organization’s meeting in Vienna.
"I think it will contribute significantly to meet the extra demand that we see coming in the second half," Falih told reporters after the meeting.
The agreement still needs to be approved by 10 non-OPEC ministers meeting in Vienna on Saturday, including Russia.
Up until Friday morning, Iran had rejected the 1 million bpd production increase. But it later complied. US President Donald Trump slapped fresh sanctions on Tehran in May and market watchers expect Iran's output to drop by a third by the end of 2018.
Oil prices soared after the producers agreed to the output increases.
Although the final OPEC communique makes no mention of the additional one million target, both US and Brent crude continued to strengthen. Brent rose $2.56 or 3.5 percent to $75.61, and US crude traded $3.70, or 5.65 percent to $69.23 a barrel by 4:07 p.m. EDT.
Trump was among those wondering how much more oil OPEC will deliver. "Hope OPEC will increase output substantially. Need to keep prices down!" Trump wrote on Twitter after the 14-member organization announced its decision.
