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OPEC cuts output by 1.5 million barrels per day

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.

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.

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.

Such a low price would endanger investments, he explained.

The basket price dropped by 0.55 dollars Thursday, to 60.27 dollars a barrel.

Analysts had said a cut by over 1 million barrels per day was needed if OPEC wanted to offset the negative effects that the global financial and economic crises and the strong dollar were having on oil prices.