OPEC raises output by 700,000 bpd

The Organization of Petroleum Exporting Countries (OPEC) agreed in Vienna on Wednesday to increase its crude output level by 700,000 barrel per day in a bid to stabilize the oil prices, AFP reported on Thursday.

OPEC Secretary General Rilwanu Lukman told a news conference the new output ceiling would be 25.4 million barrels per day, compared with the 24.692 barrels per-day-increase made in March.

Lukman said the decision had been taken "with a view to restoring crude oil prices to more moderate levels." He confirmed earlier remarks by ministers that OPEC favored an average price of around $25 a barrel.

"We will do what it takes to bring it down to a level that we consider more reasonable. We are looking at a price of around 25 dollars in the long run," he said.

But Lukman lashed out at Western governments, notably in Europe, who, he said, blame OPEC for high petrol prices when high taxes are responsible for most of the cost of fuel.

Oil prices, however, firmed following the announcement. In London, Brent crude for August delivery closed at 29.33 dollars a barrel, 31 cents higher, while in New York, light sweet crude climbed 80 cents to $31.45 a barrel.

But Lukman lashed out at Western governments, notably in Europe, who, he said, blame OPEC for high petrol prices when high taxes are responsible for most of the cost of fuel. (*)