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.
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.