Opec's oil cuts statement

News of the cuts is pushing prices higher

The oil producers' cartel Opec has agreed to reduce output cuts in a bid to support the price of crude.

The move, which may lead to rise in petrol prices, followed an unprecedented alliance with producers outside the cartel.

Below is an extract from a communiqué issued by Opec after Friday's conference.

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A consultative meeting of the conference of the Organization of the Petroleum Exporting Countries (Opec) convened in Cairo, Egypt, on 28 December 2001, under the chairmanship of its president, Dr Chakib Khelil, Minister of Energy and Mines of Algeria and head of its delegation.

Having reviewed the recent positive announcements from non-Opec oil producers, namely Angola, Mexico, Norway, Oman and the Russian federation, regarding their pledged reductions, totalling 462,500 barrels per day, and the current oil market situation, the Opec conference confirmed its decision to implement the previously announced reduction of its overall production level by an additional 1.5m barrels per day, for six months, effective 1 January 2002.

The conference emphasized the importance of adherence on the part of all producers to their pledged reductions and the need for their continued co-operation to achieve lasting market stability at fair and equitable price levels that are good for the welfare of producers and consumers alike.

To this end, the conference will continue to monitor both global economic developments and the supply/demand situation, in close consultation with other producers, in the coming months to ensure that the desired results are, indeed, realised.

Further, the conference rescheduled its next ordinary meeting to convene in Vienna, Austria, on Friday, 15 March 2002.