OPEC exporters agreed to increase their oil production for the first time in more than two years, raising output by 500,000 barrels per day to bring more oil supplies to the market.

The move to raise the production target to 27.2 million barrels per day was announced by ministers of the 12 OPEC member nations meeting in Vienna and will be effective on Nov. 1.

Since October of last year, the Organization of Petroleum Exporting Countries cartel, which provides about 40 percent of the world’s crude oil, had cut production by 1.7 million barrels per day.

The price for crude oil futures in New York Mercantile Exchange closed up 74 cents to a record high of $78.23 per barrel.

Brent crude oil futures rose 90 cents to $76.38 per barrel on the ICE Futures Europe Exchange.

OPEC’s output target was previously 25.8 million barrels per day. However today's announcement formalizes the 900,000 barrels per day increase that OPEC nations had been producing above the ceiling.

The U.S Energy Department said that OPEC’s July output was 26. 7 million barrels per day, excluding Angola and Iraq.