OPEC raises production in surprise decision

In a surprise move, the Organization of Petroleum Exporting Countries decided Tuesday to raise crude oil production by 500,000 barrels per day beginning November 1.

OPEC’s secretary general said that high prices were part of the reason the decision was taken, but he said that effects of the US subprime mortgage crisis on the wider economy was also a factor.

After dipping right after the decision, October contracts for West Texas Intermediate crude were 76 cents higher to $78.25 per barrel by the close of floor trade on the New York Mercantile Exchange, while Brent crude had added 32 cents to $75.80 per barrel on the Intercontinental Exchange in London.

Attacks on pipelines in Mexico late Monday helped support prices.

Nymex October gasoline traded even at $1.98 per gallon, while October heating oil had added 1 cent to $2.18 per gallon.

October natural gas was 6 cents higher to $5.95 per million British thermal units.