Members of the Organization of Petroleum Exporting Countries agreed at a conference in Vienna on Sept. 15 to increase daily crude oil production by 1 million barrels to 27 million. This is a record that exceeds even the 26.7 million barrels agreed on in fall 2000, and signals OPEC's intent to correct the recent surge in oil prices.
Since this decision was made, however, crude oil prices have fluctuated between $42 and $45 per barrel -- lower than the $50 level seen earlier this year but still high.
One of the reasons why oil prices remain high is that OPEC's decision to expand the quota was, in effect, merely an official endorsement of the excess production that already had been going on in recent months.