Today, the global crude oil market is under pressure. Prices continue to fall and hit record lows while production and business inventories of the black gold are growing substantially. Nevertheless, the major producers do not have plans to slow down the pace of oil production because they are afraid to lose their market share. The Organization of the Petroleum Exporting Countries is promoting such actions. The leading members of the oil group managed to convince the OPEC’s Board of Governors to employ this strategy and even lift the ceiling of crude production. Earlier, OPEC used to produce 30 million barrels per day. According to the new agreements, output will rise by 1.5 million barrels per day. The decision to increase allowable daily production triggered a faster decline in oil prices. The Brent crude lost 1.7 percent after the OPEC's meeting protocol was published. Independent observers say that the final decision was not unanimous. Representatives from Venezuela came up with a proposal to reduce production within the oil group by 5 percent trying to prop up price growth. However, the leaders of the OPEC headed by Saudi Arabia insisted on an increase. But the lack of unity in the cartel may signal that there is a discord within the organization. This way, the OPEC’s decision will aggravate the problem of oil glut in the global market. Now oil supply has already exceeded the present demand by 0.5-2.0 million barrels per day, and a lot of non-OPEC producers are struggling with great difficulties.
