Opec to increase production

From the department of I'll-believe-it-when-I_see-it:

Opec members have agreed to increase oil production by 500,000 barrels a day to meet concerns about rising demand.

The 12-nation oil producers' cartel agreed to support a proposal from influential member Saudi Arabia to raise daily production from 1 November.

Oil prices have been touching record highs on fears of a growing imbalance between supply and demand.

But despite Opec's decision US light crude settled at a record closing price of $78.23, up 74 cents.

Timing questioned

This mark is just below the all-time high of $78.77 recorded earlier this year while Brent crude closed 90 cents higher at $76.38 in London.

Analysts said the rise in output had already been factored into price calculations.

Until Tuesday, Opec ministers had insisted there would be no increase in supplies.