September 10, 2008

OPEC to Cut Oil Production in Wake of Sharp Price Drop

The Associated Press

VIENNA, Austria

Oil ministers with the Organization of Petroleum Exporting Countries have decided to curb production by more than 500,000 barrels a day. The move is a compromise meant to avoid new turmoil in oil markets while reflecting OPEC attempts to prevent prices from falling more sharply. Crude prices have dropped nearly 30 percent since spiking to nearly $150 a barrel in July.

An OPEC statement issued after oil ministers ended their meeting early today said the organization agreed to produce 28.8 million barrels a day. OPEC President Chakib Khelil said that quota, in effect, meant that member countries agreed to cut back 520,000 barrels a day .

OPEC speaks

Chakib Khelil, OPEC's president, said today at OPEC's headquarters in Vienna, Austria, that the cartel agreed, in effect, to produce 520,000 fewer barrels of crude oil a day. That's a drop of roughly 2 percent.

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