OPEC raised crude output to the highest in more than three years as it pressed on with a strategy to protect market share and pressure competing producers.
Output from the Organization of Petroleum Exporting Countries rose by 230,100 barrels a day in November to 31.695 million a day, the highest since April 2012, as surging Iraqi volumes more than offset a slight pullback in Saudi Arabia. The organization is pumping about 900,000 barrels a day more than it anticipates will be needed next year.
While the organization increase production, non-OPEC supply will fall by 380,000 barrels a day next year compared with a 130,000-barrel drop projected last month.
An expected contraction in the U.S. will account for roughly half the decline.