Business | Oil & Gas
Opec ministers announce surprise output cut
Oil jumps by a $1 as Opec leaders on Wednesday announce a surprise cut in production by about 500,000 barrels per day.
- Agencies
- Published: 08:35 September 10, 2008
- Image Credit: Gulf News Archive
- Opec will cut its oil output by about 500,000 barrels per day
Vienna: Opec leaders announced a surprise output cut on Wednesday, in response to falling oil prices.
Opec President Chakib Khelil said the group would cut oil output by about half a million barrels per day (bpd) from July's level over the next forty days.
"I think if you do your own calculation properly, it will be a lowering of production by about 520,000 barrels per day," Khelil said.
Immediately after the announcement, oil prices went up by a dollar.
The decision to return to a production ceiling of 28.8 million bpd, which was in effect a year ago, was made after nearly five hours of debate.
Opec ministers were expected to leave the output targets unchanged.
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