OPEC oil production cut
OPEC will rein in its excess production of crude at once and cut its output quotas by one million barrels a day from April 1, oil ministers said.
The Organisation of Petroleum Exporting Countries meeting in Algiers agreed to the two-stage reduction in output to try to keep oil prices stable when warmer weather erodes demand in major importing countries.
OPEC expects the combined cuts to curb its production by about 10%, or 2.5 million barrels a day.
"We are agreed that we will cut one million barrels from April 1,'' said Qatari oil minister Abdullah bin Hamad al-Ateiyah.
The April cut in OPEC’s official output target of 24.5 million barrels a day is unconditional, said Obaid al-Nasseri, oil minister for the United Arab Emirates.
OPEC’s intention to urge its members to comply with agreed quotas was expected, but its decision to make an additional cut in its formal output came as a surprise.
Oil prices, which were higher before the disclosure, extended their advance afterwards.
North Sea Brent crude for March delivery was up 59 cents at 29.70 in London, while March contracts for light sweet US crude were up 72 cents at 33.55 in trading on the New York Mercantile Exchange.
