VIENNA, Austria (AP) -- OPEC's official agreement to boost oil production by 3 percent may not add enough new crude to world markets to roll fuel prices back decisively from 10-year-highs, analysts say.
Fuel prices dipped on commodity markets Monday in response to OPEC's decision to add 800,000 barrels to its daily production target of 25.4 million barrels.
October contracts of North Sea Brent crude were down 45 cents at $32.33 a barrel on the International Petroleum Exchange in London. Contracts of light, sweet crude were down 18 cents at $33.45 before the opening of trading on the New York Mercantile Exchange, after slipping as much as 93 cents earlier in the day.
The Organization of the Petroleum Exporting Countries formally announced the increase Monday, in the face of mounting international pressure to pump more crude and cool sizzling prices.
Their new daily quota of 26.2 million barrels will take effect Oct. 1, and OPEC members agreed to meet again Nov. 12 to reassess market conditions.
However, analysts warned that the bulk of the increase, which was roughly in line with what many had predicted, will serve only to legitimize the 700,000 barrels that OPEC members are already estimated to be producing each day above their current quotas. As a result, analysts expect the impact on prices will be meager.
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