Vienna - Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) decided Friday in Vienna to cut their total production by 1.5 million barrels per day, in reaction to falling prices and slowing demand. "There is an oversupply, and the stocks are very high," said OPEC President and Algerian Energy Minsiter Chakib Khelil, explaining the decision.
The cut, down from the current quota of 28.8 million barrels per day, would be effective from the start of November, OPEC said in a statement. One barrel equals 159 litres.
Khelil denied that the cartel's move would have any impact on inflation or global economic growth.
"Growth has disappeared already in the US, has disappeared in Europe," he said.
OPEC, which produces around 40 per cent of global oil output, has seen its basket price hover below 70 dollars per barrel since mid- October, down from its July high of 140.73 dollars.
The price dropped by 0.55 dollars Thursday, to 60.27 dollars a barrel.
The current economic crisis "has nothing to do with oil, I assure you," OPEC Secretary General Abdullah al-Badri told reporters.
"We would like to have a reasonable income," he said.
The cartel is scheduled to meet next in Oran, Algeria on December 17. Khelil said the ministers might meet again before that if "it was warranted."
Analysts had said a cut by over 1 million barrels per day was necessary if OPEC wanted to offset the negative effects that the global financial and economic crises and the strong dollar were having on oil prices.
