OPEC agreed to renew its oil production cap of 30 million barrels a day for the first half of 2014, as oil prices remain well above the cartel’s threshold.
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The Organization of the Petroleum Exporting Countries, which has 12 members, alters its output based on oil prices. With Brent crude at $112 a barrel, prices currently sit higher than OPEC’s preferred level of $100 a barrel.
Libya is already producing below its capacity due to civil unrest, while Iran’s production is limited as a result of sanctions. Both scenarios have helped lift oil prices.
Also on Wednesday, OPEC extended Abdalla el-Badri’s term as secretary general for another year.
Brent crude, the international benchmark, was trading 57 cents lower at $112.05 early Wednesday morning. Nymex WTI crude rose 95 cents, or 1%, to $96.99.