Output cut expected as OPEC meets on Friday

Business Materials 24 October 2008 11:21 (UTC +04:00)

Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) set to meet Friday in Vienna were expected to cut oil production in reaction to falling prices and slowing demand.

Several of the cartel's 13 members had indicated before the meeting that they were in favour of lowering the group's joint output by at least 1 million barrels per day. One barrel equals 159 litres, reproted dpa.

Since mid-October, the basket price of OPEC crude has hovered below 70 dollars per barrel, down from its July high of 140.73 dollars.

Analysts said the cartel might have to slash production by more than 1 million barrels per day if it wanted to offset the negative effects that the global financial and economic crises and the strong dollar are having on oil prices.